The Republic of Indonesia ( RoI ) has accessed the debt capital markets for the fifth time this year when it printed on October 8 a dual-currency, multi-tranche bond transaction that included a Sustainable Development Goals ( SDG ) offering – demonstrating its commitment to global best practices in thematic financing.

The US Securities and Exchange Commission-registered transaction had a 5.5-year tranche amounting to US$600 million, which was priced at 99.758%, with a coupon of 4.30%, to offer a yield of 4.35%. This was 25 basis points ( bp ) tighter than the initial price guidance in the 4.60% area. The other US dollar tranche was a 10.5-year bond amounting to US$1.25 billion, which was priced at 99.594%, with a coupon of 4.90%, to offer a yield of 4.95%. This was also 25bp inside of the initial marketing range in the 5.20% area.

The transaction also consisted of a €600 million ( US$698 million ) offering for eight years, issued in the format of a thematic SDG bond – marking the RoI’s third SDG bond issuance since 2021. It was priced at 99.986%, with a coupon of 3.75% and a yield of 3.752%. This tranche was executed under the Sustainable Government Securities framework, which is aligned with international standards, including the International Capital Market Association Principles.

The sovereign announced the launching of the US dollar tranche during the Asia morning session on October 8, followed by the announcement of the euro tranche at the opening of the European market later on the same day. The deal garnered a strong demand from global investors with the total order books exceeding US$4.9 billion and €3 billion.

The bonds were issued under the RoI’s US$10 billion shelf programme, with the proceeds earmarked to finance the 2025 state budget. The SDG bond proceeds will be allocated to finance programmes and projects that qualify as eligible SDG expenditures under the SGS framework.

Deutsche Bank was the sustainable structuring coordinator for the transaction, as well as a joint lead manager, along with BNP Paribas, Goldman Sachs, Mandiri Sekuritas and Morgan Stanley. BRI Danareksa Sekuritas and Trimegah Sekuritas Indonesia acted as domestic dealers.

The RoI previously priced a similar trade with a euro SDG tranche amounting to €750 million for eight years in September 2024. It also raised a dual-tranche US dollar deal amounting to US$1.15 billion for 10 years and US$650 million for 30 years.