Republic of Indonesia makes Kangaroo bond market debut with AUD800 million issuance

This landmark transaction marks Indonesia’s first entry into the Australian dollar bond market, positioning the country among a select group of sovereign issuers that have accessed this important funding channel.

Felipe Duque, capital markets partner, commented: “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 for their bilateral advancement.

A&O Shearman has a longstanding relationship with the Republic of Indonesia and has acted on its cross-border financings for over two decades.

The A&O Shearman team was led by partners Felipe Duque, Karolina Popic and Minesh Patel, with support from counsel Julie Song, senior associate Yin Lim and associate Sean Cao.