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

Jakarta, CNBC Indonesia – The Indonesian government has completed the issuance of yuan-denominated global debt securities, or Panda Bonds, on Thursday (23/7/2026).

In this inaugural issuance, the government raised CNY7 billion, or around Rp18.58 trillion (at an assumed exchange rate of Rp2,655/CNY). The value is also equivalent to roughly US$1 billion.

According to records from the Directorate General of Budget Financing and Risk Management (DJPPR) at the Ministry of Finance, Indonesia offered two tenors. The three-year Panda Bond was issued at CNY5.6 billion, or around Rp14.87 trillion, whilst the five-year tranche reached CNY1.4 billion, or around Rp3.72 trillion.

Director General of Budget Financing and Risk Management at the Ministry of Finance, Suminto, revealed that the issuance was oversubscribed by 2.4 times.

“(Oversubscribed) 2.4 times. Printed at CNY7 billion with an order book of CNY17 billion,” Suminto told CNBC Indonesia on Thursday evening (23/7/2026).

Total incoming demand reached CNY17 billion, or approximately Rp45.14 trillion.

Demand for the three-year tenor reached CNY12.38 billion, or around Rp32.87 trillion, with a bid-to-cover ratio of 2.2 times. Meanwhile, demand for the five-year tenor reached CNY4.62 billion, or around Rp12.27 trillion, with a bid-to-cover ratio of 3.3 times.

The Ministry of Finance set yields of 1.90% for the three-year tenor and 2.19% for the five-year tenor. Settlement of the issuance is scheduled for 30 July 2026.

This inaugural issuance officially places Indonesia on the list of countries that have accessed China’s domestic bond market.

Which Countries Have Already Issued Panda Bonds?

Indonesia is not the first country to issue Panda Bonds. A number of governments have previously sold yuan-denominated debt securities in China’s domestic market.

South Korea pioneered this in 2015. Following that, Poland, Hungary, the United Arab Emirates, the Philippines, Portugal, and Egypt entered the market.

In 2026, the number of issuers grew with the entry of Slovenia, Pakistan, Kazakhstan, and Indonesia.

Pakistan issued its maiden Panda Bond worth CNY1.75 billion, or around Rp4.65 trillion. The issuance received backing from the Asian Infrastructure Investment Bank (AIIB) and the Asian Development Bank (ADB).

In Southeast Asia, Indonesia became the second country after the Philippines to issue Panda Bonds.

Beyond sovereign issuers, Panda Bonds have also been used by global banks such as Morgan Stanley, Deutsche Bank, and BNP Paribas, as well as multinational companies like Volkswagen and Henkel.

The strong appetite for Panda Bond issuance is also evident in the rising value of issuances.

According to data from China’s central bank, the People’s Bank of China (PBOC), throughout the first half of 2026, the value of Panda Bond issuance surged by 69% year on year, totalling around CNY160 billion, or the equivalent of Rp424.8 trillion.

Brazil Is Also Preparing to Issue Panda Bonds

Brazil is also preparing its inaugural Panda Bond issuance of up to CNY5 billion, or around US$735 million.

The issuance will mark Brazil’s first step in building a yuan financing track record in China’s domestic market.

The Brazilian government also hopes the move will pave the way for domestic companies to access yuan funding in China.