Danantara raises $1.5 billion in debut dollar bond sale

Danantara Investment Management, a unit of Indonesia’s sovereign wealth fund, raised $1.5 billion in its first US dollar bond sale after investor demand exceeded expectations. The fund sold $750 million of five-year notes at a 5.35% yield and $750 million of 10-year notes at 5.95%, according to a term sheet seen by Reuters. It had initially aimed to raise about $1 billion, but orders climbed above $4.6 billion, allowing final pricing to come in 35 basis points tighter than early guidance. The sale is a closely watched gauge of foreign appetite for Indonesian assets as the rupiah has hit record lows and Bank Indonesia lifted its benchmark rate by 25 basis points to 5.5% in an off-cycle move. The notes are due to be issued on June 18.