Danantara is set to start the US leg of its dollar bond roadshow this week, with meetings in Boston and New York, as Indonesian policymakers try to stop a selloff in the nation's markets. The fund plans to use part of the proposed bond proceeds to help refinance a loan it got earlier this year, according to people familiar with the matter. Danantara is also planning to sell local-currency bonds, dubbed the "Merah Putih Bond", that will pay a 3% coupon, with proceeds to be used for general corporate purposes, including investments and refinancing of outstanding borrowings.
➤ Indonesian sovereign wealth fund Danantara is launching a US dollar bond roadshow amidst a deepening selloff in Indonesian markets, including a record low for the rupiah.
➤ The fund plans to use proceeds from the proposed bond offering to refinance existing loans and also plans to issue local-currency 'Merah Putih Bonds' at a below-market coupon rate.
➤ The roadshow occurs as investors express unease over President Prabowo's economic agenda, prompting government efforts to stabilize markets and attract inflows.