Jakarta - BPI Danantara Rosan Roeslani's head brought good news by successfully issuing the first global bond worth US$1.5 billion.
In fact, when it first started, it was predicted that Danantara would not reach the value at that time. This was conveyed by Rosan to reporters at the Presidential Palace Complex, Jakarta, Monday, June 15.
BPI Danantara Rosan Roeslani said the incoming demand reached around US$4.6 billion. The demand emerged after Danantara held a roadshow to Hong Kong, Singapore, Boston, London, and New York.
The bonds are divided into two. Each US$750 million for a 5-year and 10-year tenor. The 5-year tenor has a yield of 5.35 percent. The 10-year tenor is 5.95 percent. Yield is the rate of return that investors are asked for when buying debt securities.
The higher the risk seen by the market, the higher the yield usually asked for. There were 122 investors met by Danantara in the roadshow. For a 5-year tenor, the largest buyers came from Europe and the Middle East at 41 percent. United States 38 percent. Asia 21 percent.
For a 10-year tenor, US investors dominate 52 percent. Europe and the Middle East 31 percent. Asia 17 percent. According to Rosan, Danantara previously had ratings from Moody's, S&P, and Fitch. For Moody's and S&P, Danantara's rating is the same as the rating of the Indonesian government or sovereign rating.
This means that the market assesses the risk to be equal to the country. The dominance of US investors gives an important signal. Western markets do not close the door to Indonesia, although there was previously pressure on the rupiah and the stock market.
Rosan said investors asked a lot of questions in the roadshow meeting. The questions were sharp. They wanted to see Danantara's policies, governance, and future investment plans.
At this point, Danantara got initial capital in the form of trust. But market confidence is always conditional. If the governance is loose, the market can quickly change its attitude.
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