The bond offers yields of 2.5% on five-year notes and 2.9% on the 10-year tranche
[SINGAPORE] Indonesia has launched its debut offshore renminbi-denominated, or dim sum, bond, raising six billion yuan (S$1.1 billion) across two tranches priced at 2.50 per cent and 2.90 per cent, according to a term sheet seen by Reuters late on Thursday (Oct 23).
The five-year tranche is 3.5 billion yuan with a yield of 2.5 per cent, while the 10-year is 2.5 billion with a yield of 2.9 per cent, compared with initial guidance of 2.95 per cent and about 3.30 per cent, respectively.
The bonds are SEC-registered senior unsecured notes under New York law, with fixed coupons paid semi-annually. They mature on Oct 31, 2030, and Oct 31, 2035, and will be listed on the Singapore Exchange.
Bank of China (Hong Kong), HSBC and Standard Chartered are the joint bookrunners, the term sheet showed.
Proceeds will be used for general government purposes. The bonds are expected to carry ratings of Baa2/BBB/BBB from Moody’s, S&P and Fitch, in line with Indonesia’s sovereign ratings.
Indonesia, South-east Asia’s largest economy, has been active in global debt markets, raising A$800 million (S$676.7 million) in August via its first kangaroo bond and US$2.54 billion earlier in October via US dollar and euro notes, including a sustainable tranche for development projects.
The dim sum issuance adds to Indonesia’s diversification strategy. Year-to-date, it has raised about US$3.38 billion from eight non-US dollar and non-local currency bond issues, including euro, Australian dollar and yen tranches, according to LSEG data. REUTERS
