Indonesian sovereign wealth fund Danantara is raising another 12.62 trillion rupiah (US$760 million) by selling so-called patriot bonds to the wealthiest local families and businesses.
The offering comprises a 11.04 trillion rupiah tranche maturing in November 2030, and a 1.58 trillion rupiah tranche maturing in November 2032, according to data on the website of the Indonesia Central Securities Depository on November 26. The coupon rate is 2%.
Danantara has not disclosed how it will use the proceeds. A Bloomberg report on November 28 cites sources familiar with the offering as saying the funds will be mainly used for waste-to-energy projects in Indonesia.
Spokespersons for Danantara did not immediately respond to questions from Asia Asset Management.
Patriot bonds refer to debt where the wealthy show their patriotism by subscribing to low coupon bonds.
Danantara’s new offering comes two months after it raised 50 trillion rupiah from a patriot bond issuance, also at a 2% coupon.
