Indonesia eyes up to 10b yuan panda bond sale in fourth quarter
Indonesia is considering a return to China's onshore debt market with a panda bond offering of 7 billion to 10 billion yuan (US$970 million to US$1.5 billion) in the fourth quarter, a finance ministry official said on Thursday.
Indonesia is considering a return to China's onshore debt market by offering panda bonds in the fourth quarter, eyeing sales between 7 billion yuan (HK$8.2 billion) and 10 billion yuan, a finance ministry official said on Thursday.
The sovereign sold 7 billion yuan in its debut panda bond sale in July.
"We have space to offer foreign currency bonds in the fourth quarter, subject to market conditions, and ... the panda bond is being considered because the July debut was a success," said Suminto, the finance ministry's head of financing.
An issuance timed for around November to early December is being considered, but Indonesia would look for the best window, he said.
"The cost of funds for panda bonds is relatively lower and China's financial market is stable," he said.
Indonesia has been diversifying its foreign currency bond issues in recent years, including a kangaroo bond sale for the first time last year. It is also a regular issuer of bonds in US dollars, euros and Japanese yen.
Bloomberg News, citing people familiar with the matter, reported that the planned panda bonds may have maturities of three, five and seven years.