Indonesia issues bonds denominated in yuan for the first time.

VTV.vn - Indonesia has raised 6 billion yuan (US$842 million) through its first issuance of yuan-denominated bonds (also known as dim sum bonds).

Indonesia issues bonds denominated in RMB for the first time.

Indonesia has raised 6 billion yuan (US$842 million) through its first yuan-denominated bond issuance (also known as dim sum bonds), aiming to diversify its financing sources and expand its global investor base.

According to Mr. Suminto, Director-General of the Budget and Risk Management Department ( Ministry of Finance ), the total value of subscriptions reached approximately 18 billion yuan, three times the issuance size. Strong demand came from global investors in the US, Europe, and the Asia-Pacific region, with Chinese investors accounting for a large proportion. The funds raised will be used as state budget funds, in line with the government's prudent debt management strategy. The Ministry of Finance affirmed that it will be flexible in choosing the currency for subsequent issuances, depending on market conditions.

This bond issue is rated Baa2 by Moody's, BBB by S&P and Fitch, and will be listed on the Singapore Stock Exchange (SGX). This move helps broaden the investor base and strengthen financial ties with China.

"Dim sum" bonds are bonds issued in yuan outside mainland China, whereas previously, panda bonds were yuan-denominated bonds issued by foreign institutions within China. This issuance is part of Indonesia's 2025 foreign currency bond issuance series aimed at maintaining capital stability amidst volatile global markets.

According to the budget plan, the government aims to raise 642.6 trillion rupiah (US$39 billion) this year to cover the deficit. This year, Indonesia has issued several types of foreign currency bonds, including: dual-currency bonds (USD and Euro) in January and October, raising over US$3 billion; Islamic bonds (sukuk) in July; Samurai bonds denominated in Japanese Yen in June (worth 103.2 billion Yen); and Kangaroo bonds denominated in Australian dollars (AUD) in August (worth 800 million AUD).

Source: https://vtv.vn/indonesia-lan-dau-tien-phat-hanh-trai-phieu-bang-nhan-dan-te-100251029100348439.htm