FX.co ★ Indonesia Plans Renminbi-Denominated Bond Sale

Indonesia is set to venture into the offshore bond market with the issuance of its inaugural renminbi-denominated bond, commonly referred to as a dim sum bond. As reported by Reuters, the nation has engaged the services of Bank of China (Hong Kong), HSBC, and Standard Chartered as joint lead managers and bookrunners for this undertaking, according to information in a preliminary prospectus supplement released on Wednesday. The bonds will be registered with the U.S. Securities and Exchange Commission and are part of Indonesia’s global debt issuance program. They will be lodged with Hong Kong’s Central Moneymarkets Unit and cleared through Euroclear and Clearstream. Additionally, there is an application in place to have these bonds listed on the Singapore Exchange. The issuance will include tranches of five-year and ten-year durations, with expected ratings of Baa2/BBB/BBB from Moody’s, S&P, and Fitch, mirroring Indonesia's sovereign credit ratings. The proceeds from this issuance are intended for general governmental use. A senior official from Indonesia's finance ministry noted on October 14th that the country is poised to embark on its initial dim sum bond sale.