Indonesia's sovereign wealth fund, Danantara, has engaged banks for a potential global US dollar bond issuance, testing investor appetite amid economic headwinds.
According to informed sources, Danantara has appointed Citigroup, DBS Bank, HSBC, Mandiri Securities, and Standard Chartered as joint lead managers and bookrunners. They will arrange a series of fixed-income investor meetings and calls across Asia, Europe, and the United States starting Wednesday. The sources requested anonymity as the information is not public. This underwriting arrangement does not guarantee the transaction will be completed.
The potential bond offering coincides with heightened investor concerns regarding some policies of Indonesian President Prabowo Subianto. Both Moody's and Fitch have recently revised their outlook on Indonesia's credit rating to negative. Prabowo established Danantara last year to enhance the efficiency of Indonesia's robust state-owned enterprises, reinvest dividends, and attract foreign investment into high-impact projects within Southeast Asia's largest economy.
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