Indonesia's sovereign wealth fund hires banks for potential global dollar bond issuance

Golden Ten Data reported on June 3 that, according to foreign media, Indonesia’s sovereign wealth fund Danantara has hired banks for a potential global US dollar bond issuance, testing investor interest as the country faces economic headwinds. According to people familiar with the matter, Danantara has appointed Citigroup, DBS Bank, HSBC, Mandiri Securities, and Standard Chartered as joint lead managers and joint bookrunners, and will arrange a series of fixed income investor meetings and conference calls in Asia, Europe, and the United States starting Wednesday. This mandate does not mean a deal will definitely take place. The potential issuance comes at a time when investors are increasingly concerned about some of President Prabowo’s initiatives; earlier this year, both Moody’s and Fitch Ratings revised the country’s credit outlook to negative. Prabowo established Danantara last year to improve the efficiency of Indonesia’s powerful state-owned enterprises, reinvest dividends, and attract foreign capital into high-impact projects in Southeast Asia’s largest economy.