On July 23, Bank of China acted as the lead underwriter and lead bookrunner, successfully facilitating Indonesia's debut issuance of 7 billion yuan in Panda bonds. This marks the largest first-time issuance in the entire market and sets a new record for the single-largest issuance size of sovereign Panda bonds. The issuance included a 5.6 billion yuan three-year tranche and a 1.4 billion yuan five-year tranche, with coupon rates of 1.9% and 2.19%, respectively.

The successful completion of this bond represents another significant financial outcome of the high-quality joint construction of the Belt and Road Initiative and the deepening of the comprehensive strategic partnership between China and Indonesia. This issuance not only effectively broadens a diversified and low-cost financing channel for the Indonesian government but also introduces a new sovereign issuer to the Panda bond market, fully demonstrating the strong appeal of China's capital market for global sovereign financing.

As the first Chinese bank to enter Indonesia, Bank of China has consistently operated locally while serving a global clientele, deeply integrating into the broader landscape of bilateral economic and trade cooperation. This has set a new benchmark for Belt and Road Initiative partner countries to deepen financial cooperation with China:

Deepening Local Presence and Streamlining Cross-Border RMB Services

Bank of China was the first to establish a RMB clearing network in Indonesia, the first to implement the China-Indonesia cross-border QR code payment project, and has been authorized by the People's Bank of China to serve as the RMB clearing bank in Indonesia. Currently, the bank maintains a market-leading position in multiple business areas, including RMB deposits, loans, clearing, and settlement, making it the largest RMB service provider and the primary channel for RMB clearing in the region.

Coordinated Efforts and Excellence in Multi-Currency Sovereign Bond Underwriting

In October 2025, Bank of China acted as the global coordinator to successfully assist Indonesia in issuing 6 billion yuan in Dim Sum bonds in Hong Kong for the first time. The following March, it again assisted in the issuance of a dual-currency bond combining offshore RMB and euros, with a total issuance size of approximately 31.1 billion yuan, setting a record for the largest Southeast Asian bond issuance involving Chinese institutions. This renewed collaboration on the Panda bond further underscores the high degree of recognition the Indonesian government has for Bank of China's cross-market, multi-currency, integrated financial service capabilities.

Panda bonds are RMB-denominated bonds issued by overseas institutions within China's onshore market. As the preferred bank for overseas institutions entering the Panda bond market, Bank of China has participated as a lead underwriter in the issuance of 21 sovereign Panda bonds to date, achieving a coverage rate of 91% for overseas sovereign issuers. The bank has held the top spot among Panda bond underwriters for twelve consecutive years.

Since the start of this year, Bank of China has assisted sovereign issuers including Slovenia, Pakistan, Kazakhstan's Samruk-Kazyna sovereign wealth fund, and Indonesia in making their debut in the Panda bond market. Through high-quality financial services, the bank is helping to expand and upgrade the Panda bond market, continuously promoting the international use of the RMB and the high-level opening of China's financial sector.