Jakarta, CNBC Indonesia \u2013 The Indonesian government has completed the\nissuance of yuan-denominated global debt securities, or Panda Bonds, on\nThursday (23\/7\/2026).<\/p>\n
In this inaugural issuance, the government raised CNY7 billion, or\naround Rp18.58 trillion (at an assumed exchange rate of Rp2,655\/CNY).\nThe value is also equivalent to roughly US$1 billion.<\/p>\n
According to records from the Directorate General of Budget Financing\nand Risk Management (DJPPR) at the Ministry of Finance, Indonesia\noffered two tenors. The three-year Panda Bond was issued at CNY5.6\nbillion, or around Rp14.87 trillion, whilst the five-year tranche\nreached CNY1.4 billion, or around Rp3.72 trillion.<\/p>\n
Director General of Budget Financing and Risk Management at the\nMinistry of Finance, Suminto, revealed that the issuance was\noversubscribed by 2.4 times.<\/p>\n
\u201c(Oversubscribed) 2.4 times. Printed at CNY7 billion with an order\nbook of CNY17 billion,\u201d Suminto told CNBC Indonesia on Thursday evening\n(23\/7\/2026).<\/p>\n
Total incoming demand reached CNY17 billion, or approximately Rp45.14\ntrillion.<\/p>\n
Demand for the three-year tenor reached CNY12.38 billion, or around\nRp32.87 trillion, with a bid-to-cover ratio of 2.2 times. Meanwhile,\ndemand for the five-year tenor reached CNY4.62 billion, or around\nRp12.27 trillion, with a bid-to-cover ratio of 3.3 times.<\/p>\n
The Ministry of Finance set yields of 1.90% for the three-year tenor\nand 2.19% for the five-year tenor. Settlement of the issuance is\nscheduled for 30 July 2026.<\/p>\n
This inaugural issuance officially places Indonesia on the list of\ncountries that have accessed China\u2019s domestic bond market.<\/p>\n
Which Countries Have Already Issued Panda Bonds?<\/p>\n
Indonesia is not the first country to issue Panda Bonds. A number of\ngovernments have previously sold yuan-denominated debt securities in\nChina\u2019s domestic market.<\/p>\n
South Korea pioneered this in 2015. Following that, Poland, Hungary,\nthe United Arab Emirates, the Philippines, Portugal, and Egypt entered\nthe market.<\/p>\n
In 2026, the number of issuers grew with the entry of Slovenia,\nPakistan, Kazakhstan, and Indonesia.<\/p>\n
Pakistan issued its maiden Panda Bond worth CNY1.75 billion, or\naround Rp4.65 trillion. The issuance received backing from the Asian\nInfrastructure Investment Bank (AIIB) and the Asian Development Bank\n(ADB).<\/p>\n
In Southeast Asia, Indonesia became the second country after the\nPhilippines to issue Panda Bonds.<\/p>\n
Beyond sovereign issuers, Panda Bonds have also been used by global\nbanks such as Morgan Stanley, Deutsche Bank, and BNP Paribas, as well as\nmultinational companies like Volkswagen and Henkel.<\/p>\n
The strong appetite for Panda Bond issuance is also evident in the\nrising value of issuances.<\/p>\n
According to data from China\u2019s central bank, the People\u2019s Bank of\nChina (PBOC), throughout the first half of 2026, the value of Panda Bond\nissuance surged by 69% year on year, totalling around CNY160 billion, or\nthe equivalent of Rp424.8 trillion.<\/p>\n
Brazil Is Also Preparing to Issue Panda Bonds<\/p>\n
Brazil is also preparing its inaugural Panda Bond issuance of up to\nCNY5 billion, or around US$735 million.<\/p>\n
The issuance will mark Brazil\u2019s first step in building a yuan\nfinancing track record in China\u2019s domestic market.<\/p>\n
The Brazilian government also hopes the move will pave the way for\ndomestic companies to access yuan funding in China.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/indonesia-issues-debut-panda-bond-joining-south-korea-and-10-other-nations-1784875864", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }