Danantara Bond Sale Attracts Strong Demand in Debut Dollar Offering

Danantara Investment Management, a subsidiary of Indonesia’s sovereign wealth fund Danantara, has raised USD1.5bn through its first US dollar-denominated bond issuance, attracting strong investor demand despite concerns surrounding Indonesia’s markets and economic outlook.

The Danantara bond sale comprised USD750m of five-year bonds and USD750m of 10-year bonds.

According to Reuters, orders peaked at approximately USD4.6bn, allowing final yields to be reduced by 35 basis points from initial guidance.

The five-year notes were priced to yield 5.35%, while the 10-year tranche was priced at 5.95%.

Analysts said enthusiasm for the Danantara bond sale reflected the fund’s strategic importance to Indonesia’s economic development agenda and expectations of implicit government support.

Investor interest remained robust despite concerns surrounding the rupiah, Indonesian equities and some of President Prabowo Subianto’s policy initiatives.

Danantara was launched in February 2025 and reports directly to the president, positioning it as a central vehicle for Indonesia’s long-term investment strategy.