JAKARTA - Behind Danantara's success in raising US$1.5 billion from the global market, there is a testing process from foreign investors. Before buying bonds, they first asked a number of critical questions related to Danantara's policies, governance, and investment direction.
The Minister of Investment and Industrialization/Head of the Investment Coordinating Board (BKPM) and Head of BPI Danantara Rosan Roeslani said the roadshow was held since June 3 to Hong Kong, Singapore, Boston, London, and New York. In the agenda, Danantara explained the investment policy and the institution's plan to investors.
"The question and answer is very fast, the question and answer is very fast," said Rosan when giving information to reporters together with the Minister of State Secretary Prasetyo Hadi at the Presidential Palace Complex, Monday, June 15.
According to Rosan, some investors previously had doubts about the Indonesian economy and the direction of government policies. However, after receiving direct explanations, investor perceptions are said to have started to move positively.
Rosan said Danantara met with around 122 investors. After the roadshow, Danantara conducted a book building, which is the process of collecting interest from prospective investors.
From the initial target of around US$1 billion, the incoming demand reached around US$4.6 billion. Andantara then raised the issuance value to US$1.5 billion.
The bonds are divided into two tenors. Each US$750 million for five-year and ten-year tenors. The five-year tenor has a yield of 5.35 percent, while the ten-year tenor is 5.95 percent.
Yield is the return that investors ask for when buying debt securities. If the risk is considered high, usually the yield requested is also higher.
Rosan said the results showed that Danantara's credibility was accepted by investors. He also said that openness, transparency, governance, and accountability were things that Danantara maintained when communicating with the market.
According to Rosan, the positive response from investors is seen from the high demand for the bonds. He called the result as proof that investor confidence in Indonesia still exists and remains high.
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