DBS proudly supports Indonesia's Inaugural Panda Bonds Issuance | Bahasa
Indonesia, 10 Aug 2026 - Indonesia reached an important milestone in the capital markets with the successful issuance of RMB7 billion worth of panda bonds, making it the country's first sovereign bond issuance in China's domestic bond market. Supporting this landmark transaction, DBS acted as Joint Lead Underwriter and Joint Bookrunner, marking DBS's first mandate for a panda bond issuance by a non-bank issuer from Southeast Asia. The transaction demonstrated the Indonesian Government's commitment to diversifying its development financing sources while expanding access to investors across different markets and currencies. It also strengthened Indonesia's access to long-term financing while deepening financial connectivity with China.
Further strengthening Indonesia's debut in China's capital markets, the bonds were issued in two tranches: a three-year 5.6 billion-RMB bond with a 1.90% coupon and five-year 1.4 billion-RMB bond with a 2.19% coupon. The transaction attracted strong participation from a diverse range of institutional investors, including domestic banks, wealth management institutions, securities firms, asset managers and investment funds, as well as foreign banks and government investment institutions from Southeast Asia, the Middle East, and other regions. As the only foreign bank appointed Joint Lead Underwriter for the bonds, DBS, together with the other Joint Lead Underwriters, supported the issuer by conducting both virtual and in-person roadshows and coordinating efforts with credit rating agencies. These collaborative efforts have earned the issuer and the bonds an AAA rating from China Lianhe Credit Ratings Co., Ltd.
President Director of PT Bank DBS Indonesia Lim Chu Chong said, “By accessing China's highly liquid bond market, we are supporting Indonesia in expanding its access to new RMB-based investors. DBS's unique network connecting Southeast Asia and China positions us as a strategic financial bridge, enabling more ASEAN issuers to access China's capital markets while facilitating regional financing and investment, further strengthening financial connectivity across the region.”
As the largest economy in ASEAN, Indonesia has set a record for the value of its panda bond issuance in China's bond market. The successful transaction reflected strong investor confidence in Indonesia's economic fundamentals. In its inaugural issuance, the panda bonds generated approximately RMB17 billion in investor demand, equivalent to around 2.4 times the issuance size, enabling the government to secure competitive funding costs. The bonds were also assigned an AAA (Stable) rating by China Lianhe Credit Rating Co., Ltd., further strengthening Indonesia's credibility among domestic Chinese investors.
The panda bonds were issued amid uncertainty in global financial markets, driven by elevated global interest rates, exchange rate volatility, and evolving international market conditions. Against this backdrop, diversifying financing sources has become increasingly important to reduce reliance on any single currency or capital market. Beyond broadening diversification, this approach also provides the government with a wider range of financing options while enhancing flexibility in managing sovereign debt. This strategy is aligned with the government's efforts to build a more resilient financing structure that can better withstand external volatility.
President and Chief Executive Officer of DBS China Ginger Cheng said, “This inaugural panda bond issuance marked an important milestone for Indonesia in expanding its access to one of the world's largest bond markets. We are proud to support the Government of Indonesia in this landmark transaction while further strengthening financial connectivity between Indonesia and China.”
The panda bond issuance marked another significant milestone in Indonesia's RMB financing journey, following the issuance of RMB9.25 billion worth of dim sum bonds in Hong Kong SAR in February. At the same time, the successful inaugural issuance sent a positive signal that international investors continue to have confidence in Indonesia's fiscal stability and long-term economic growth prospects despite the challenging global economic environment.
The success of this partnership further demonstrates Bank DBS Indonesia's commitment as a trusted partner in supporting national economic growth. In recent years, DBS has also actively leveraged its qualification as an Appointed Cross-Currency Dealer (ACCD) for the Chinese renminbi and Indonesian rupiah (IDR), supported by close collaboration among DBS teams in China, Indonesia, and across the region. This synergy aims to facilitate cross-border capital flows while strengthening multilateral economic, trade, and financial cooperation between China and ASEAN.
[END]
About DBS
DBS is a leading financial services group in Asia with a presence in 19 markets. Headquartered and listed in Singapore, DBS is in the three key Asian axes of growth: Greater China, Southeast Asia and South Asia. The bank's "AA-" and "Aa1" credit ratings are among the highest in the world.
Recognised for its global leadership, DBS has been named “World’s Best Bank” by Global Finance, “World’s Best Bank” by Euromoney and “Global Bank of the Year” by The Banker. The bank is at the forefront of leveraging digital technology to shape the future of banking, having been named “World’s Best AI Bank” by Global Finance, “World’s Best Digital Bank” by Euromoney and the winner of multiple digital assets awards. In addition, DBS has been accorded the “Safest Bank in Asia“ award by Global Finance for 17 consecutive years from 2009 to 2025.
DBS provides a full range of services in Consumer, Wealth, SME and corporate banking. As a bank born and bred in Asia, DBS understands the intricacies of doing business in the region’s most dynamic markets.
Established in 1989 as part of the Singapore-based DBS Group, PT Bank DBS Indonesia (Bank DBS Indonesia) is one of the banks with the longest history in Asia.
Currently operating 1 Operational Head Office, 13 Branch Offices, 14 Sub-Branch Offices, 32 ATMs spread across major cities and 2.861 active employees in 15 major cities in Indonesia, Bank DBS Indonesia provides comprehensive banking services that focus on the customer experience to 'Live more, Bank less'. We also see a purpose beyond banking and are committed to supporting our customers, employees, and the community towards a sustainable future.
PT Bank DBS Indonesia is licensed and supervised by The Indonesian Financial Services Authority (OJK), and an insured member of Indonesia Deposit Insurance Corporation (LPS).
DBS is committed to building lasting relationships with customers, as it banks the Asian way. Through the DBS Foundation, the bank creates impact beyond banking by uplifting lives and livelihoods of those in need. It provides essential needs to the underprivileged, and fosters inclusion by equipping the underserved with financial and digital literacy skills. It also nurtures innovative social enterprises that create positive impact.
With its extensive network of operations in Asia and emphasis on engaging and empowering its staff, DBS presents exciting career opportunities. For more information, please visit www.dbs.com.
Further strengthening Indonesia's debut in China's capital markets, the bonds were issued in two tranches: a three-year 5.6 billion-RMB bond with a 1.90% coupon and five-year 1.4 billion-RMB bond with a 2.19% coupon. The transaction attracted strong participation from a diverse range of institutional investors, including domestic banks, wealth management institutions, securities firms, asset managers and investment funds, as well as foreign banks and government investment institutions from Southeast Asia, the Middle East, and other regions. As the only foreign bank appointed Joint Lead Underwriter for the bonds, DBS, together with the other Joint Lead Underwriters, supported the issuer by conducting both virtual and in-person roadshows and coordinating efforts with credit rating agencies. These collaborative efforts have earned the issuer and the bonds an AAA rating from China Lianhe Credit Ratings Co., Ltd.
President Director of PT Bank DBS Indonesia Lim Chu Chong said, “By accessing China's highly liquid bond market, we are supporting Indonesia in expanding its access to new RMB-based investors. DBS's unique network connecting Southeast Asia and China positions us as a strategic financial bridge, enabling more ASEAN issuers to access China's capital markets while facilitating regional financing and investment, further strengthening financial connectivity across the region.”
As the largest economy in ASEAN, Indonesia has set a record for the value of its panda bond issuance in China's bond market. The successful transaction reflected strong investor confidence in Indonesia's economic fundamentals. In its inaugural issuance, the panda bonds generated approximately RMB17 billion in investor demand, equivalent to around 2.4 times the issuance size, enabling the government to secure competitive funding costs. The bonds were also assigned an AAA (Stable) rating by China Lianhe Credit Rating Co., Ltd., further strengthening Indonesia's credibility among domestic Chinese investors.
The panda bonds were issued amid uncertainty in global financial markets, driven by elevated global interest rates, exchange rate volatility, and evolving international market conditions. Against this backdrop, diversifying financing sources has become increasingly important to reduce reliance on any single currency or capital market. Beyond broadening diversification, this approach also provides the government with a wider range of financing options while enhancing flexibility in managing sovereign debt. This strategy is aligned with the government's efforts to build a more resilient financing structure that can better withstand external volatility.
President and Chief Executive Officer of DBS China Ginger Cheng said, “This inaugural panda bond issuance marked an important milestone for Indonesia in expanding its access to one of the world's largest bond markets. We are proud to support the Government of Indonesia in this landmark transaction while further strengthening financial connectivity between Indonesia and China.”
The panda bond issuance marked another significant milestone in Indonesia's RMB financing journey, following the issuance of RMB9.25 billion worth of dim sum bonds in Hong Kong SAR in February. At the same time, the successful inaugural issuance sent a positive signal that international investors continue to have confidence in Indonesia's fiscal stability and long-term economic growth prospects despite the challenging global economic environment.
The success of this partnership further demonstrates Bank DBS Indonesia's commitment as a trusted partner in supporting national economic growth. In recent years, DBS has also actively leveraged its qualification as an Appointed Cross-Currency Dealer (ACCD) for the Chinese renminbi and Indonesian rupiah (IDR), supported by close collaboration among DBS teams in China, Indonesia, and across the region. This synergy aims to facilitate cross-border capital flows while strengthening multilateral economic, trade, and financial cooperation between China and ASEAN.
[END]
About DBS
DBS is a leading financial services group in Asia with a presence in 19 markets. Headquartered and listed in Singapore, DBS is in the three key Asian axes of growth: Greater China, Southeast Asia and South Asia. The bank's "AA-" and "Aa1" credit ratings are among the highest in the world.
Recognised for its global leadership, DBS has been named “World’s Best Bank” by Global Finance, “World’s Best Bank” by Euromoney and “Global Bank of the Year” by The Banker. The bank is at the forefront of leveraging digital technology to shape the future of banking, having been named “World’s Best AI Bank” by Global Finance, “World’s Best Digital Bank” by Euromoney and the winner of multiple digital assets awards. In addition, DBS has been accorded the “Safest Bank in Asia“ award by Global Finance for 17 consecutive years from 2009 to 2025.
DBS provides a full range of services in Consumer, Wealth, SME and corporate banking. As a bank born and bred in Asia, DBS understands the intricacies of doing business in the region’s most dynamic markets.
Established in 1989 as part of the Singapore-based DBS Group, PT Bank DBS Indonesia (Bank DBS Indonesia) is one of the banks with the longest history in Asia.
Currently operating 1 Operational Head Office, 13 Branch Offices, 14 Sub-Branch Offices, 32 ATMs spread across major cities and 2.861 active employees in 15 major cities in Indonesia, Bank DBS Indonesia provides comprehensive banking services that focus on the customer experience to 'Live more, Bank less'. We also see a purpose beyond banking and are committed to supporting our customers, employees, and the community towards a sustainable future.
PT Bank DBS Indonesia is licensed and supervised by The Indonesian Financial Services Authority (OJK), and an insured member of Indonesia Deposit Insurance Corporation (LPS).
DBS is committed to building lasting relationships with customers, as it banks the Asian way. Through the DBS Foundation, the bank creates impact beyond banking by uplifting lives and livelihoods of those in need. It provides essential needs to the underprivileged, and fosters inclusion by equipping the underserved with financial and digital literacy skills. It also nurtures innovative social enterprises that create positive impact.
With its extensive network of operations in Asia and emphasis on engaging and empowering its staff, DBS presents exciting career opportunities. For more information, please visit www.dbs.com.
Useful Links
Awards
World's Best Bank 2025, 2018 - 2022
Euromoney, Global Finance, The Banker
Asia’s Safest Bank, 2009 – 2025
Global Finance
