Government Issues 7 Billion Yuan Panda Bond
Jakarta (ANTARA) - The government, through the Ministry of Finance, has officially issued yuan-denominated debt securities, known as Panda Bonds, worth 7 billion yuan, equivalent to approximately US$1.033 billion.
The Panda Bonds were issued in two series: series RICNY0729 with a three-year tenor, and series RICNY0731 with a five-year tenor.
The Directorate General of Budget Financing and Risk Management (DJPPR) stated in Jakarta on Friday that series RICNY0729 was issued at 5.6 billion yuan with a coupon of 1.90 per cent and will mature on 30 July 2029.
Meanwhile, series RICNY0731 was issued at 1.4 billion yuan with a coupon of 2.19 per cent, maturing on 30 July 2031.
Both series had their pricing date on 23 July 2026 and are scheduled for settlement on 30 July 2026, or T+5.
DJPPR said that Indonesia’s maiden Panda Bond issuance received a positive response from investors in China’s domestic market. Total investor demand (peak orderbook) reached approximately 17 billion yuan, resulting in a bid-to-cover ratio of 2.4 times.
“The high investor demand allowed the government to obtain efficient funding costs through competitive yield levels,” DJPPR wrote.
DJPPR assessed that the strong investor demand and competitive yields reflect robust market confidence in Indonesia’s economic fundamentals and the credibility of the government’s fiscal management.
In addition, the achievement was supported by effective communication with investors in China as well as the utilisation of favourable market momentum.
The proceeds from the Panda Bond issuance will be used to meet the financing needs of the 2026 fiscal year state budget (APBN).
In its issuance, the Panda Bonds received a credit rating of AAA (Stable) from China Lianhe Credit Rating Co., Ltd.
Bank of China Limited acted as lead underwriter and lead bookrunner. Meanwhile, China International Capital Corporation Limited, CITIC Securities Co., Ltd., DBS Bank (China) Limited, and Industrial and Commercial Bank of China Limited served as joint lead underwriters and joint bookrunners.
In addition, Agricultural Bank of China Limited, China Construction Bank Corporation, and The Export-Import Bank of China acted as co-managers in the transaction.