Global Market: Indonesia appoints banks for inaugural yuan-denominated panda bond issue

Indonesia has appointed a consortium of banks to arrange its first-ever yuan-denominated panda bond issuance in China's interbank bond market, according to a mandate sheet reviewed by Reuters on Tuesday.

According to Reuters, the proposed transaction remains subject to prevailing market conditions and will mark Indonesia's debut in China's domestic bond market through a panda bond offering.

The mandate sheet shows that Bank of China has been appointed as the lead underwriter and lead bookrunner for the issue. Meanwhile, CICC, CITIC Securities, DBS Bank China and ICBC will serve as joint lead underwriters and joint bookrunners, Reuters reported.


Indonesia currently holds investment-grade sovereign credit ratings from major international agencies. According to the document reviewed by Reuters, the country is rated Baa2 by Moody's, BBB by S&P Global Ratings and BBB by Fitch Ratings.

In addition, Indonesia has received an AAA onshore rating from Chinese credit rating agency Lianhe, the mandate sheet reviewed by Reuters showed.

The size, tenor and pricing details of the planned panda bond have not yet been disclosed. Reuters reported that the issuance will proceed depending on market conditions.