Indonesia targets US$1 billion Panda Bond in China market
Issuance is set to begin next week, with a goal of selling this year after approval is submitted to the PBOC.
The Indonesian government is targeting the issuance of a Panda Bond worth about US$1 billion in China’s domestic bond market. Finance Minister Purbaya Yudhi Sadewa said the amount could be increased if market demand is strong. The plan is being prepared to broaden international funding sources and help support rupiah stability through renminbi-denominated debt. During a June 16-19 visit to Beijing, Purbaya met with China Finance Minister Lan Fo'an, the People's Bank of China, AIIB, and investors. He said the PBOC asked for the licensing process to be accelerated, but documents from the underwriter have not yet been submitted. Purbaya also met 15 institutional investors, including Agriculture Bank of China, Zhong Ou Asset Management, and ICBC Wealth Management.