This is the first time I’ve realized that a country can borrow money in another country’s bond market.
Indonesia is preparing to issue up to 12 billion yuan in panda bonds in China, with maturities of 3, 5 and 7 years. Book building is scheduled for November 11.
Panda bonds are yuan-denominated bonds issued in mainland China by overseas entities. Put simply, the Indonesian government is borrowing money from investors in China’s bond market.
And this isn’t the first time.
In July this year, Indonesia issued 7 billion yuan in panda bonds, with coupons of just 1.9% for the 3-year bonds and 2.19% for the 5-year bonds.
Now it’s preparing to borrow up to 12 billion yuan again.
Does this count as a meaningful step forward in the internationalization of the renminbi?
$BNB
Indonesia is preparing to issue up to 12 billion yuan in panda bonds in China, with maturities of 3, 5 and 7 years. Book building is scheduled for November 11.
Panda bonds are yuan-denominated bonds issued in mainland China by overseas entities. Put simply, the Indonesian government is borrowing money from investors in China’s bond market.
And this isn’t the first time.
In July this year, Indonesia issued 7 billion yuan in panda bonds, with coupons of just 1.9% for the 3-year bonds and 2.19% for the 5-year bonds.
Now it’s preparing to borrow up to 12 billion yuan again.
Does this count as a meaningful step forward in the internationalization of the renminbi?
$BNB
