Fitch Ratings and S&P Global Ratings have assigned a ‘BBB’ rating to Danantara Investment Management’s (DIM) proposed global medium-term note (MTN) programme, while Southeast Asia-focused venture capital firm Alpha JWC Ventures is targeting up to $300 million for its fifth flagship fund.
Fitch, S&P rate Danantara’s global bond programme BBB
Fitch Ratings and S&P Global Ratings have assigned BBB ratings to Danantara Investment Management’s (DIM) proposed global medium-term note (MTN) programme, paving the way for the state-backed investment vehicle to access international debt markets.
The ratings mark a key step in Danantara’s planned entry into global debt markets. The wealth fund has been preparing a US dollar bond issuance and engaging prospective investors as it seeks to diversify funding sources beyond its domestic Patriot bond programme.
DIM, the investment arm of sovereign wealth fund Badan Pengelola Investasi Daya Anagata Nusantara, or Danantara Indonesia, plans to use proceeds to fund investments in line with its mandate of managing and deploying dividends generated by state-owned enterprises.
Fitch said the rating on the programme and its inaugural issuance is equalised with DIM’s Long-Term Foreign-Currency Issuer Default Rating because the notes constitute the company’s direct, unsecured and unsubordinated obligations. The agency added that the programme’s structure makes DIM jointly and severally liable for notes issued under it.
The rating agency said its assessment is driven by a “virtually certain” likelihood of support from the Indonesian government under its Government-Related Entities framework. Fitch cited Danantara’s strategic role and strong links to the state, noting that its overall support assessment resulted in the company’s ratings being aligned with those of the sovereign.
S&P reached a similar conclusion, saying its BBB rating reflects the expectation that the Indonesian government would provide timely and sufficient support to Danantara in a stress scenario. The agency views the institution as an important policy vehicle that will help execute the government’s investment objectives and manage strategic state assets.
Both agencies indicated that any change to Indonesia’s sovereign credit rating would likely have a corresponding impact on Danantara’s ratings.
Alpha JWC Ventures targets up to $300m for fifth fund
Southeast Asia-focused venture capital firm Alpha JWC Ventures is targeting up to $300 million for its fifth flagship fund, according to a regulatory filing with the US Securities and Exchange Commission.
The filing confirms DealStreetAsia’s earlier report that Alpha JWC had begun marketing its fifth fund to prospective limited partners. Sources also said the firm had secured early commitments of up to $70 million from a mix of European institutional investors and sovereign-backed limited partners.
The fundraising comes at a time when venture capital firms across the region continue to face a challenging fundraising environment amid slower exits, subdued public markets, and increasingly selective institutional investors. Even so, established managers with strong track records have continued to attract LP interest.
Founded in 2015, Alpha JWC is among Southeast Asia’s most active venture capital firms.
