TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
Popular Reads
Top Results
No results found. Please check your search term and try again
Can't find what you're looking for?
View all search results
Popular Reads
Top Results
No results found. Please check your search term and try again
Can't find what you're looking for?
View all search resultsIndonesia raises 6 billion yuan through first dim sum bond issuance
The five-year bond has a coupon of 2.5 percent, while the 10-year one offers 2.9 percent.
Change text size
Gift Premium Articles
to Anyone
Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!
A bank employee counts China's renminbi or yuan notes next to US dollar notes on Jan. 25, 2023, at a Kasikornbank branch in Bangkok. (Reuters/Athit Perawongmetha)
I
ndonesia has collected 6 billion yuan (US$842.34 million) through its first-ever renminbi-denominated bond, or dim sum bond, marking its latest effort to diversify funding sources and broaden its global investor base.
The issuance, conducted on Oct. 23 with settlement on Oct. 31, comprised two tranches, a five-year 3.5-billion-yuan bond with a 2.5 percent coupon and a 10-year 2.5-billion-yuan bond offering 2.9 percent, below the initial guidance of 2.95 percent and 3.30 percent, respectively.
Read also: Kangaroo bonds to be issued next month: Sri Mulyani
Total orders reached around 18 billion yuan, or three times the issuance size, according to the Finance Ministry’s director general of budget financing and risk management.
Initial pricing had been suggested at about 45 basis points above market yields for the five-year tranche and 40 basis points for the 10-year tranche.
“The strong demand came from a broad base of global investors across the US, Europe and Asia-Pacific, with Asian investors, including those from China, dominating the book,” Suminto, the Finance Ministry’s director general of budget financing and risk management, said on Wednesday, as quoted by Kontan.
Proceeds from the sale would be used to finance the state budget in line with the government’s prudent debt management strategy, he added.
Your Opinion Matters
Share your experiences, suggestions, and any issues you've encountered on The Jakarta Post. We're here to listen.
Enter at least 30 characters
0
/ 30
Thank you
Thank you for sharing your thoughts. We appreciate your feedback.
