Indonesia Issues Debut Panda Bond, Joining South Korea and 10 Other Nations

The Indonesian government has completed the issuance of its first global bonds denominated in yuan, known as Panda Bonds. The issuance raised CNY7 billion, equivalent to approximately Rp18.58 trillion. According to the Directorate General of Financing and Risk Management at the Ministry of Finance, Indonesia offered two tenors. The three-year bonds were issued at a value of CNY5.6 billion with a yield of 1.90%, while the five-year bonds totalled CNY1.4 billion with a yield of 2.19%. Settlement is scheduled for 30 July 2026. Suminto, Director General of Financing and Risk Management at the Ministry of Finance, stated that the issuance was oversubscribed by 2.4 times, with the total order book reaching CNY17 billion. Demand for the three-year tenor reached CNY12.38 billion, representing a bid-to-cover ratio of 2.2 times, while the five-year tenor saw demand of CNY4.62 billion, a bid-to-cover ratio of 3.3 times. This landmark issuance places Indonesia among a select group of sovereigns that have accessed China’s domestic bond market. South Korea was the pioneer in 2015, followed by Poland, Hungary, the United Arab Emirates, the Philippines, Portugal, and Egypt. In 2026, the list expanded to include Slovenia, Pakistan, Kazakhstan, and Indonesia. Indonesia is the second Southeast Asian nation to issue a Panda Bond, following the Philippines. Beyond sovereign issuers, global banks such as Morgan Stanley, Deutsche Bank, and BNP Paribas, as well as multinational corporations like Volkswagen and Henkel, have also utilised Panda Bonds. According to the People’s Bank of China, total Panda Bond issuance surged 69% year-on-year in the first half of 2026, reaching approximately CNY160 billion. Brazil is also preparing to issue its first Panda Bond, targeting up to CNY5 billion, as it seeks to establish a financing track record in the Chinese domestic market.