Danantara Gets $1 Billion Loan at Double Cost of ‘Patriot Bonds’

Indonesian sovereign wealth fund Danantara has secured a loan equivalent to $1 billion, people familiar with the matter said, paying more than double for the money than it did with its so-called patriot bonds.

The three-year loan — which allows drawdowns in several currencies — offers an interest margin of 95 basis points above the US Secured Overnight Financing Rate for the dollar tranche, translating into about 4.61% at current levels. That means Danantara is paying more than twice the 2% coupon on its five- and seven-year patriot bonds that it previously issued to Indonesia’s richest families.