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Allen & Overy advises the Republic of Indonesia on Asia’s first sovereign SDG eurobond

Allen & Overy has advised the Republic of Indonesia (the Republic) on its issue of EUR500 million 1.300% bonds due 2034, the first-ever eurobond by a sovereign in Asia to finance the United Nations’ Sustainable Development Goals (SDGs) for global prosperity and wellbeing by 2030. The SDG bond was classified under the Republic’s “SDGs Government Securities Framework”, published in August 2021, which identifies “eligible expenditures” across green, blue and social-focus categories to help the Republic meet the United Nations’ SDGs.

Allen & Overy has also advised on the Republic’s inaugural liability management transaction in respect of its external debt. Concurrently with the issue of the SDG bonds, the Republic issued USD600m 2.150% bonds due 2031 and USD650 million 3.200% bonds due 2061 to fund a USD1.25 billion tender offer for certain of the Republic’s global bonds maturing in the near-term. The SDG bond and bonds to fund the tender offer were issued in takedowns from the Republic’s shelf registration statement with the SEC.

Allen & Overy is honoured to have represented the Republic as to matters of US federal securities, New York and (through Ginting & Reksodiputro, its associated firm in Indonesia) Indonesian law on all of its recent SEC-registered transactions, assisting it to raise a total of approximately USD16 billion-equivalent since January 2020.

The deal team on this matter comprised partners Harun Reksodiputro and Felipe Duque, along with senior associates Richele Suwita and Magdalena Biereder, and associates Randy Pongtiku and Sean Cao. Partner Jack Heinberg and associate Dustin Plotnick in our New York office advised on US federal tax matters.