Danantara Explores Global Bond Issuance for Future Funding

Strategic Treasury Management

Danantara is considering entering the global bond market as part of its treasury management strategy for the coming years. Managing Director Treasury Ali Setiawan revealed that the company is exploring various funding instruments to expand or diversify its financing options. These instruments include global bond issuance, offshore debt securities, and banking facilities.

Conservative Approach to International Funding

Ali Setiawan emphasized a cautious approach to entering the global bond market. "We don't need to be champions from the start. What's important is to learn first and test the waters. We will focus on conservative risk-adjusted returns for the first three years," he stated during a media briefing. This approach indicates Danantara's intention to carefully assess the risks and benefits of international funding before making significant commitments.

Diversification of Funding Sources

The exploration of global bond issuance is part of Danantara's broader strategy to diversify its funding sources. By considering various financial instruments, including offshore debt securities and banking facilities, Danantara aims to optimize its capital structure and reduce dependence on any single funding source. This strategic move is expected to enhance the company's financial flexibility and resilience in the long term.