Jakarta. Sovereign wealth fund Danantara Indonesia has raised $1.5 billion through its inaugural global bond issuance after investor demand significantly exceeded the original fundraising target, Chief Executive Rosan Perkasa Roeslani said on Monday.

The offering was initially planned at $1 billion but was increased by 50% after the book-building process generated approximately $4.6 billion in orders, representing more than four times the original target.

According to Rosan, the strong response reflects investor confidence in Indonesia's economic outlook and Danantara's credibility as the country's state investment vehicle.

“From the initial target of $1 billion, we received approximately $4.6 billion in orders. Given the exceptionally strong interest, we increased the issuance size from $1 billion to $1.5 billion,” Rosan said at a press conference at the Presidential Office in Jakarta.

The bond was issued in two tranches, consisting of $750 million in five-year notes and $750 million in 10-year notes.

US investors accounted for the largest share of demand. In the five-year tranche, investors from the United States represented 38% of allocations, while investors from Europe and the Middle East accounted for 41% and Asian investors for 21%.

Demand from US investors was even stronger in the 10-year tranche, where they accounted for 52% of allocations. Investors from Europe and the Middle East represented 31%, while Asian investors accounted for the remaining 17%.

Rosan attributed the strong investor interest in part to an extensive international roadshow conducted by Danantara's management team, which met with 122 global investors across Hong Kong, Singapore, Boston, London, and New York.

“During the roadshow, we presented Danantara's investment strategy and policy direction. I can report that the response was extremely positive,” Rosan said.

He said the outcome exceeded expectations, particularly among observers who had questioned whether the newly established sovereign wealth fund would be able to attract international investors or secure competitive funding costs.

“This result exceeded the expectations of many people who initially doubted that investors would be willing to buy Danantara bonds,” he added.

According to Rosan, the proceeds from the bond issuance are expected to be transferred to Danantara's accounts after the transaction settles on June 18.

Following the strong demand, Danantara is considering issuing longer-dated bonds in the future, including securities with maturities of up to 30 years.

“Going forward, we see opportunities to issue bonds with maturities of up to 30 years because investor interest has been very strong. Investors view Indonesia's economic growth as stable despite ongoing geopolitical and geoeconomic challenges,” Rosan said.

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