Indonesia Secures AAA China Rating Ahead of Debut $1 Billion Panda Bond Sale
Jakarta. Indonesia has received a top-tier AAA credit rating with a stable outlook from Lianhe Credit Rating ahead of its inaugural Panda Bond issuance in China's domestic bond market, Finance Minister Purbaya Yudhi Sadewa said on Tuesday.
The AAA rating, the highest available on China's domestic credit rating scale, is expected to strengthen investor confidence as Indonesia prepares to launch the offering on July 23.
The government plans to raise $1 billion through the debut issuance, although the initial offering has been deliberately capped despite expectations of strong demand.
"Because this is a new market for us, we want to test it first, even if demand turns out to be very strong. We'll limit the first issuance to $1 billion, and if necessary, we can return to the market several months later with a larger offering," Purbaya told a press conference.
Before the planned issuance, Indonesia's Panda Bond underwent a credit assessment by Lianhe Credit Rating, one of China's leading domestic credit rating agencies.
"Lianhe Credit Rating is a highly respected credit rating agency in China. An AAA rating with a stable outlook is the highest rating available," Purbaya said.
He added that the top rating would make it easier for Indonesia to market the bonds to Chinese investors, highlighting the country's vast debt market as a promising new source of financing.
"China has a massive bond market. Its capital market offers enormous financing capacity, and with an AAA rating, we should not face significant difficulties in issuing debt there," he said.
For the inaugural issuance, Bank of China has been appointed as the lead underwriter. Industrial and Commercial Bank of China (ICBC), China International Trust and Investment Corporation (CITIC), China International Capital Corporation (CICC), and DBS will serve as joint lead underwriters and joint bookrunners.
Several other major Chinese banks will participate as co-managers. According to Purbaya, the involvement of multiple leading financial institutions reflects strong market interest and confidence in Indonesian government debt securities.
The Panda Bond marks Indonesia's first issuance of renminbi-denominated sovereign bonds in China's onshore market.
Tags: Keywords:
as a preferred
Related Articles
Suahasil Inherits Fiscal Credibility Test as Investor Confidence Wavers
Suahasil Nazara faces pressure to restore fiscal credibility as investors seek consistent policies, clearer signals and market confidence.
Indonesia’s Tax Chief Flags Irregularities in Purbaya’s Staff Reshuffle
Indonesia’s tax chief flags irregularities in Purbaya’s staff reshuffle over merit-based appointments.
US Investors Not Worried by Indonesia’s Finance Minister Switch
US-ASEAN Business Council says that American investors are more concerned about the policy changes rather than who is helming the ministry.
Suahasil’s Return Puts Fiscal Discipline at Center of Prabowo’s Economic Policy
Suahasil Nazara takes over as finance minister, with policy consistency and fiscal discipline emerging as key challenges.
Suahasil Told to Avoid Business Cost Hikes, Tax Refund Delays
Businesses have laid out their wishlist for the newly appointed Finance Minister Suahasil Nazara.
Purbaya Admits Sudden Exit ‘Partly’ due to Internal Shuffling
Ex-Finance Minister Purbaya Yudhi Sadewa speaks up on his sudden dismissal.
Indonesian Stocks Gain as Investors Await Suahasil’s Fiscal Policy
Indonesian stocks opened higher as investors weighed Suahasil Nazara’s appointment as finance minister and awaited his fiscal policy.
Suahasil Promises Credible, Trusted Finance Ministry after Purbaya Exit
The new Finance Minister pledged credibility and economic stability as experts urged him to go beyond maintaining the fiscal status quo.
No Major Change Expected Under New Finance Minister Suahasil
Economists say major shifts will only happen if new Finance Minister Suahasil Nazara is brave enough to make changes.
Meet Suahasil Nazara, Prabowo’s Third Finance Minister in Less than Two Years
Suahasil has risen from academia and years of fiscal policymaking to become Prabowo’s third finance minister in less than two years.The Latest
Ye Concert, Other Events to Draw 130,000 to GBK, Here’s What to Know
Around 130,000 visitors are expected at Jakarta’s GBK on Saturday as Ye’s concert and several major events take place.
Indonesia Allocates Rp 722 Billion for Year-End Flight Ticket Tax Relief
Indonesia allocates Rp 722 billion to cover domestic flight ticket VAT during the 2026/2027 Christmas and New Year holidays.
Greece Floats Shipbuilding Partnership with Indonesia
Greece says that it possesses “extensive expertise” as it woos Indonesia in shipbuilding partnership.
Indonesian Stocks Rally 4.9%, but Foreign Investors Keep Selling
Indonesia’s JCI rose 4.9% last week, but foreign selling and MSCI downgrade risks continue to cloud the market outlook.
Ye Concert in Jakarta to Deploy 2,000 Security Personnel
More than 2,000 personnel will secure Ye’s Jakarta concert on Saturday, as organizers urge fans to use public transport.Most Popular
