Indonesian Fund to Raise Another $756 Million From Patriot Bonds

Indonesian sovereign wealth fund Danantara is raising an additional 12.6 trillion rupiah ($756 million) through a debt offering to the nation’s wealthiest businesses and families, bringing the total raised from its “patriot bond” program to more than $3.7 billion.

The new follow-on issuance by Danantara Investment Management, the fund’s investment arm, makes use of an oversubscription option from its September sale, which raised 50 trillion rupiah ($3.0 billion) at below-market yields. The second-phase offering carries the same 2% coupon, with most of the notes maturing in five years and the remainder in seven years, according to a filing this week with the local securities depository.