Indonesia Launches Largest Southeast Asian Bond Offering with Dual-Currency Issuance

Deep News
Mar 04

Bank of China, acting as the lead global coordinator, has successfully assisted the Indonesian government in issuing offshore renminbi bonds in Hong Kong, alongside a debut euro-denominated bond offering. The dual-currency bond issuance totaled approximately 31.1 billion yuan, marking the largest bond offering in Southeast Asia with participation from Chinese financial institutions in underwriting roles.

The bond issuance included multiple tranches: a 3-year bond of 4.5 billion yuan, a 5-year bond of 3.5 billion yuan, and a 10-year bond of 1.25 billion yuan, alongside euro-denominated bonds comprising an 8-year tranche of 1.2 billion euros, a 12-year tranche of 800 million euros, and a 20-year tranche of 700 million euros. The respective coupon rates were set at 2.45%, 2.65%, 3.05%, 4.10%, 4.47%, and 4.98%.

This dual-currency bond issuance represents another successful initiative by Bank of China in leveraging the strategic role of its Hong Kong-based Southeast Asia regional headquarters to expand market presence across the region. It also underscores the Indonesian government's confidence in Bank of China's comprehensive cross-currency and cross-market service capabilities.

Bank of China will continue to utilize its global advantages and cross-border financial services expertise to provide innovative multi-currency and multi-market financial solutions for various issuers. The bank remains committed to promoting the development of the offshore renminbi market, strengthening Hong Kong's status as an international financial center, and advancing the international use of the renminbi.

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