Indonesia Issues First Ever RMB-Denominated Dim Sum Bonds

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Indonesia's finance ministry recently issued its first renminbi-denominated dim sum bonds (Dim Sum Bonds), totaling 6 billion yuan (about 13.9 trillion rupiah), setting a record for the country's offshore renminbi-denominated bond issuance.The bonds are scheduled to be issued in two maturities: a 5-year coupon of 2.5% (code RICNH1030) and a 10-year coupon of 2.9% (code RICNH1035).

Over-subscribed up to 3 timesFinal order sizeRMB 18 billionThe three major rating agencies have nowinvestment grade rating(Moody's Baa2/S&P BBB/Fitch BBB) will be followed by theSingapore Exchange (SGX-ST)Listing. The offering attracted a large number ofChinese onshore investors and global capital participationThe final rate of return was higher than the initial guidanceNarrowed by 40-45 basis pointsThe

The Ministry of Finance said the move was aimed atDiversifying financing channels and expanding the global investor base.The funds raised will be used to finance the state budget in 2025. This is the 18th time that Indonesia has passedSEC Shelf Registration MethodThe issuance of global bonds marks the country'sReintegration into the international bond marketand the first attempt atRenminbi offshore bond varietiesThe Bank of China, HSBC and Standard Chartered Bank acted as co-lead managers. Bank of China, HSBC and Standard Chartered Bank acted as joint lead managers.

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