Core Viewpoint - The issuance of offshore RMB bonds by Bank of China (Hong Kong) for the Indonesian government marks a significant milestone as it is the first long-term public offering of such bonds by a Southeast Asian sovereign entity, reflecting strong investor confidence in Indonesia's economic prospects [1] Group 1: Bond Issuance Details - The total issuance size is RMB 6 billion, comprising RMB 3.5 billion for a 5-year term and RMB 2.5 billion for a 10-year term, with pricing rates of 2.5% and 2.9% respectively [1] - The order book peaked at RMB 22 billion, achieving a subscription multiple of 3.67 times, indicating robust demand from investors [1] Group 2: Role of Bank of China (Hong Kong) - Bank of China (Hong Kong) acted as the settlement agent, joint lead manager, and joint bookrunner for the bond issuance, utilizing multiple settlement systems including those in Hong Kong, Europe, and Luxembourg [1] - The bank's vice president expressed pride in assisting Indonesia with its first offshore RMB bond issuance, highlighting Indonesia's significant role in ASEAN due to its large population, economy, and territory [1] Group 3: Market Response and Future Implications - The bond received enthusiastic responses from both international investors, including those from China, and local Indonesian investors, showcasing confidence in Indonesia's economic outlook [1] - The issuance is seen as a crucial step for the Indonesian government to diversify its financing channels and is expected to enhance economic ties between China and Indonesia, expanding cooperation from trade to capital and currency markets [1] - The Jakarta branch of Bank of China (Hong Kong) aims to leverage this opportunity to deepen its presence in the Indonesian market and contribute to the development of the local capital market [1]
中银香港助力印度尼西亚政府发行首笔离岸人民币债券