08-07-2025
Indonesia's sovereign wealth fund Danantara appoints four banks to lead up to US$10 billion loan: sources
[JAKARTA] Indonesian sovereign wealth fund Danantara appointed four banks to coordinate a multicurrency borrowing of as much as US$10 billion, in what could be South-east Asia's largest loan, according to people familiar with the matter.
DBS Group, HSBC, Natixis and Standard Chartered will be acting as coordinators for the facility, the people said, who asked not to be identified discussing private matters.
Danantara, formally known as Daya Anagata Nusantara, sent a request for proposals to regional and international banks for the loan last month with tenors of around three to five years, Bloomberg reported earlier.
'The proposed loan is in substantial size and short tenor, implying considerable repayment pressure,' Viacheslav Shilin and Ting Meng, Asian credit strategists at Australia & New Zealand Banking Group, wrote in a report. This could result in increased reliance on dividends from quasi-sovereign entities to service the debt or a recurring need to refinance, the report said. That could weigh on investor sentiment towards Indonesian quasi-credits.
Spokespeople for DBS, HSBC and Standard Chartered declined to comment. Danantara and Natixis did not immediately respond to requests for comment.
The fund, which reports directly to President Prabowo Subianto, is a core component of the president's vision to propel South-east Asia's largest economy to 8 per cent growth during his presidency. With Indonesian state-owned enterprises under its supervision – including some of the nation's largest banks and oil and gas giant Pertamina – executives have suggested the fund will have more than US$1 trillion in assets.
The mega loan will be unsecured and will not carry any guarantee nor come with letters of comfort or support from the government, while proceeds will be for general corporate purposes, Bloomberg News reported. BLOOMBERG
