Indonesia issues AUD800m Kangaroo bond

The Republic of Indonesia has issued its first Australian dollar dominated bonds: AUD500 million 4.400% Notes due 2030 and AUD300m 5.300% Notes due 2035.

Felipe Duque, capital markets partner at A&O Shearman who advised on the issue, said, “This transaction reflects the Republic’s commitment to diversifying its funding sources. By tapping into the Australian dollar market, the Republic has broadened its investor base and demonstrated its ability to access the global capital markets in non-G3 currencies. The successful debut entry in the Kangaroo bond market also sets a valuable reference for Indonesian corporates seeking to diversify their funding sources. We are honored to have been involved.”

The issuance highlights the strengthening financial and economic ties between Indonesia and Australia, following the introduction of a comprehensive strategic partnership framework between the countries.