Government Issues 7 Billion Yuan Panda Bond

The government, through the Ministry of Finance, has officially issued yuan-denominated bonds, known as Panda Bonds, worth 7 billion yuan, equivalent to approximately 1.033 billion US dollars. The Panda Bond was issued in two series, namely the RICNY0729 series with a 3-year tenor and the RICNY0731 series with a 5-year tenor. The Directorate General of Financing and Risk Management (DJPPR) stated that the RICNY0729 series was issued for 5.6 billion yuan with a coupon of 1.90 percent and will mature on 30 July 2029. Meanwhile, the RICNY0731 series was issued for 1.4 billion yuan with a coupon of 2.19 percent and will mature on 30 July 2031. Both series had a pricing date on 23 July 2026 and are scheduled for settlement on 30 July 2026. The DJPPR noted that Indonesia’s inaugural Panda Bond issuance received a positive response from investors in China’s domestic market. Total investor demand reached a peak orderbook of approximately 17 billion yuan, resulting in a bid-to-cover ratio of 2.4 times. The strong demand allowed the government to secure efficient funding costs through competitive yield settings. The high investor demand and competitive yields reflect strong market confidence in Indonesia’s economic fundamentals and the credibility of the government’s fiscal management. The proceeds from the Panda Bond issuance will be used to meet the financing needs of the 2026 State Budget. The Panda Bond received an AAA (Stable) credit rating from China Lianhe Credit Rating Co., Ltd. Bank of China Limited acted as the lead underwriter and lead bookrunner, while 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. Agricultural Bank of China Limited, China Construction Bank Corporation, and The Export-Import Bank of China acted as co-managers for the transaction.