Indonesia issues first yuan-denominated bonds

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

Indonesia issues first yuan-denominated bonds

Indonesia has raised 6 billion yuan ($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 Department of Budget Financing and Risk Management (Ministry of Finance), the total value of subscriptions reached about 18 billion yuan, three times the issuance scale. Strong demand came from global investors in the US, Europe and the Asia- Pacific region, of which Chinese investors accounted for a large proportion. The raised money will be used as the State budget, according to the government's prudent debt management strategy. The Ministry of Finance affirmed that it will be flexible in choosing the currency for the next issuances, depending on market conditions.

The bonds are rated Baa2 by Moody's, BBB by S&P and BBB by Fitch, and will be listed on the Singapore Exchange (SGX), a move that will broaden the investor base and strengthen financial ties with China.

Dim sum bonds are yuan-denominated bonds issued outside mainland China, while previously, panda bonds were yuan bonds issued by foreign entities within China. The issuance is part of Indonesia's 2025 foreign currency bond series aimed at maintaining stable funding amid volatile global markets.

According to the budget plan, the Government aims to raise 642.6 trillion rupiah (39 billion USD) this year to cover the deficit. This year, Indonesia has issued many other types of foreign currency bonds such as: Dual currency bonds (USD and Euro) in January and October, raising a total of more than 3 billion USD; Islamic bonds (sukuk) in July; Japanese Yen samurai bonds in June (worth 103.2 billion Yen); Australian dollar (AUD) kangaroo bonds in August (worth 800 million AUD).

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