Indonesia’s state-owned fund Danantara Indonesia has successfully issued $1.5 billion international bond.

The fund said in a statement on last Friday that amid challenging global economic conditions, heightened geopolitical uncertainty, and elevated United States Treasury yields, Danantara Indonesia, through Danantara Investment Management (DIM), has continued to receive strong confidence from international financial markets.

It noted that strong global investor enthusiasm was reflected in the peak orderbook of approximately $4.6 billion, or more than three times the total issuance size.

The demand was supported by high-quality institutional investors from the United States, Europe, the Middle East, Africa (EMEA), and Asia, it added.

It also said this successful issuance demonstrates that Danantara Indonesia is viewed as having strong fundamentals, governance, and long-term prospects, allowing it to remain an attractive investment destination for reputable global investors.

The confidence shown by international markets is also expected to strengthen confidence among domestic investors and the broader public in the strength of Danantara Indonesia’s institutional framework, it added.

It is noted that the DIM’s inaugural bond offering was priced at the following yields: $750 million 5-year notes priced at 5.35 percent; $750 million 10-year notes priced at a yield of 5.95 percent.

The notes are priced at tight levels relative to the Republic of Indonesia’s sovereign curve.

The 5-year tranche is priced at a spread of 32 basis points over Indonesia’s sovereign secondary curve, including 22bps over sovereign fair value and a 10 basis points (bps) new issue concession.

The 10-year tranche is priced at a spread of 34 basis points over the sovereign secondary curve, comprising 24 bps over fair value plus a 10bps new issue concession.

According to the firm, achieving such a narrow differential to the Republic of Indonesia’s curve, with limited new issue concession, on a debut transaction without the benefit of an existing curve or issuance track record, underscores strong investor confidence in DIM’s credit profile, governance framework, and institutional positioning.

DIM’s spreads over the Republic of Indonesia’s curve compare favorably with those of established sovereign-linked issuers relative to their sovereign benchmarks, highlighting investor recognition of DIM’s robust institutional framework and clear sovereign linkage.

The combined peak orderbooks exceeded $4.6 billion, representing aggregate demand of more than 3 times the final issue size, with participation from institutional investors across the United States, Europe, Middle East, and Africa (EMEA), and Asia, said the statement.

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