Sovereign wealth fund Danantara Indonesia’s “Patriot” bonds offering has received more commitments than the targeted 50 trillion rupiah ($3 billion), two sources familiar with the matter said on Tuesday.
The bonds, which were offered to companies, will be sold in 5- and 7-year tranches carrying a 2% interest rate, lower than the government’s 10-year bond yield at around 6% and will help fund Indonesia’s energy programmes, such as waste-to-energy projects.
It initially expected to launch the bond on October 1, but that will be delayed, one of the sources said, without giving details, but added it was not due to a lack of interest.
“On the contrary, it has actually reached the target,” one of the sources said, adding it was oversubscribed.
The second source said the offering was oversubscribed at 51 trillion rupiah, or 1 trillion rupiah higher than the target, with companies committing to buy within the range of 500 billion rupiah to 3 trillion rupiah.
Another source with knowledge of the bond offering said the launch will be held on October 15.
Danantara did not immediately respond to a request for comment.
In an interview with Reuters in August, Danantara chief investment officer Pandu Sjahrir said the fund’s decision to issue the Patriot bonds was well received among leading Indonesian companies.
Some of Indonesia’s richest people, including Prajogo Pangestu, who controls the Barito Pacific Group conglomerate, Garibaldi Thohir with AlamTri Group, and Franky Widjaja of Sinar Mas Group, were among those to have expressed interest in buying the bonds, Pandu had said.
Reuters
