The Republic of Indonesia remains a pioneer in Sustainable Development Goal (SDG) bonds among Asian sovereigns
Capitalising on the stable market conditions and amid a favorable Fed Policy rate cut expectations backdrop, the Republic of Indonesia (ROI) successfully priced a multi-tranche SEC*-registered bonds totaling USD 2.6 billion - 10-year USD 1,150 million, 30-year USD 650 million and 8-year EUR 750 million.
The EUR 750 million tranche marks the second Sustainable Development Goals (SDG) bond issued an Asian sovereign, following the Republic of Indonesia’s first issuance in 2021 which was the very first by a sovereign in Asia. The SDGs framework is in line with international standards including the International Capital Market Association (ICMA) principles. As a long standing partner of the Republic of Indonesia, Crédit Agricole CIB again supported this transaction, acting as a Joint Lead Manager and Joint Bookrunner.
This issuance also represents the largest dual-currency bond issuance by an Asian sovereign issuer (ex-Japan) in 2024, resetting Republic of Indonesia’s EUR pricing curve since 2021. With 3.5 times of oversubscription, the 8-year sustainable EUR portion exceeded the Ministry of Finance’s price and size targets. It serves as a strong benchmark for other issuers in the region to follow.
“The Republic of Indonesia once again proved its exceptional quality to the global investor base and emphasised its role as one of the largest, most seasoned and most sophisticated issuers from the APAC region through a well-timed and very well-received bonds issuance. It goes without saying that our top notch debt capital markets expertise has been able to support their needs with a high degree of distinction and flexibility. It was an honor for our franchise to secure this coveted. We look forward to continuing to work closely with the Republic of Indonesia to support the country’s economic growth and its sustainability trajectory.”
Javier Carballo
Head of Debt Origination & Advisory, Southeast Asia & India
“Having supported the Indonesian Ministry of Finance over the years, both in the funding and debt capital markets, Crédit Agricole CIB continues to maintain a close relationship, in particular, with the Directorate General of Budget Financing and Risk Management, which is responsible for loans and grants that support the financing of strategic goods and services and public debt securities. Our position as a panel member has remained in place since 2019, followed by our ESG support in developing their SDG framework in 2021. Our persistency in providing market updates led to the subsequent success of our participation in the latest rounds of USD and EUR fund raising for SEC 15**. We look forward to continuing this partnership in the years to come.”
Djaja Tambunan
Senior Banker, Indonesia
“This successful second issuance of SDG bond, after the last one issued in 2021, highlights the strong appetite from investors and reflects Indonesia’s commitment to advancing SDG goals Will open in a new tab as part of its 2030 National Development Agenda. The issuance further solidifies Republic of Indonesia’s role as a frontrunner in innovative financing and paves the way for other countries to embrace similar strategy to speed up the achievement of SDG goals.”
Roy Chan
Director, Sustainable Investment Banking, Southeast Asia, India & Australia
*SEC: The U.S. Securities and Exchange Commission (SEC) is the U.S. federal agency responsible for regulating the securities markets and protecting investors
**15: It is their 15 times to issue under SEC format.
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