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View all search resultsGovt eyes renminbi-denominated panda bonds issuance this year
Last year, the government also began issuing renminbi-denominated debt through so-called dim sum bonds, which are similar to panda bonds but are marketed mainly in Hong Kong.
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A bank employee counts Chinese renminbi notes next to US dollar bills on Jan. 25, 2023, at a Kasikornbank branch in Bangkok. (Reuters/Athit Perawongmetha)
T
he government is planning to issue renminbi-denominated bonds in mainland China, known as panda bonds, this year as part of its financing diversification strategy.
Finance Minister Purbaya Yudhi Sadewa said in a media briefing on Tuesday that the target was to start issuance in the second half of this year.
“One of the directives from Bapak President Prabowo Subianto is to diversify global financing sources,” Purbaya was quoted as saying by Kompas.com.
He said the interest rate on panda bonds was “cheap, only 2.3 percent”, and therefore “we can press down our cost of capital”.
The minister held a meeting with China’s Finance Minister Lan Fo’an on the sidelines of the 2026 Spring Meetings of the International Monetary Fund and the World Bank Group in Washington DC, last week.
In the meeting, the Chinese minister said his government was planning to issue bonds in Indonesia, which Purbaya said was a form of “reciprocity” by virtue of the panda bonds issuance plan.
“China is our largest trading partner, the result of that talk is very positive. I think, going forward, our relationship with China in terms of international trade will still be good,” said Purbaya.
