Kangaroo Bond Perdana RI Welcomed Warmly, Orderbook Reaches 8 Billion Australian Dollars

JAKARTA - The Indonesian government for the first time issued Government Securities (SUN) in foreign currency Australian Dollar (AUD) (Kangario Bond).

This first transaction was carried out through the Australian Medium-Term Notes (AMTN) program.

The government has issued two series of bonds in the Australian Dollar (AUD), namely RIAUD0830 and RIAUD0835.

The RIAUD0830 series has a tenor of 5 years, with an maturity date of 14 August 2030.

The nominal issuance amounted to 500 million Australian dollars, with coupons of 4.40 percent.

Yield offered is 4.427 percent, with a re-offer price of 99.880 percent and a reoffer spread of SQ ASW + 90 bps.

The RIAUD0835 series has a tenor of 10 years, with an maturity date of August 14, 2035.

The nominal issuance is 300 million Australian dollars, with a coupon of 5.30 percent.

Yield offered is 5.380 percent, with a re-offer price of 99.387 percent and a reoffer spread of SQ ASW + 135 bps.

The pricing date is set on August 7, 2025, and the date of departure / release is scheduled for August 14, 2025.

The government officially announced the opening of the inaugural offer for the issuance of Kangaroo Bond on August 7, 2025.

The offer managed to attract global investors, including investors based in Australia, to reach a total orderbook of around $8 billion.

The high demand allows the Government to set a more competitive final yield rate than the Initial Price Guidance, with a 25 basis points (bps) drop for a 5 year tenor and 30 bps for a 10-year tenor.

The final refund spreads are set at the SQ ASW +90 bps and SQ ASW +135 bps levels, respectively.

Thus, the yield for the 5-year tenor is 4.427 percent, while for the 10-year tenor it is 5.380 percent.

Finance Minister Sri Mulyani said that this issuance is an important milestone in strengthening the potential entry of investment from Australian investors in the future.

"The first issuance of Kangaroo Bond by the Indonesian government is a strategic step in order to diversify APBN financing, expand the global investor base, as well as become a milestone to increase economic cooperation between Indonesia and Australia," he said in his statement, Friday, August 8.

He added that the high interest of global investors, including Australian domestic investors, reflects investors' confidence in economic stability and credibility in Indonesia's fiscal management.

Treasurer of Australia Jim Chalmers said that his party was very happy to see how fast and enthusiastic the market was in responding to the first Australian Dollar bonds from the Government of Indonesia.

"This bond is an example of a solid economic partnership between Australia and Indonesia," he said.

The results of this issuance will generally be used for APBN financing in 2025.

In addition, the bonds issued in this transaction were rated Baa2 by Moody's, BBB by Standard & Poor's, and BBB by Fitch.

For information, ANZ, Standard Chartered Bank, and UBS Bank acted as Joint Lead Managers in this transaction.