Indonesia plans debut yuan bonds as dim sum issuance hits record

The country is also seeking more funding sources as President Prabowo Subianto tries to boost economic growth

Indonesia is planning its first offshore yuan denominated bond sale, adding to a rush of offerings that have pushed dim sum bond issuance to a record high so far this year.

The potential offering may include five-year and 10-year notes, according to a source familiar with the plan.

Government and corporate issuers have sold a combined 724.5 billion yuan (S$132 billion) of dim sum notes this year, a rise of about 8 per cent from a year earlier, marking the highest tally for the period ever, according to data compiled by Bloomberg.

Dim sum bonds have drawn an array of borrowers recently as offshore yuan funding has become cheaper. Chinese local governments are piling into the market as they try to diversify sources of funding, while tech firms are selling more of the notes as they look to secure cheap financing to power their artificial intelligence ambitions.

Indonesia is also seeking more funding sources as President Prabowo Subianto tries to boost economic growth. South-east Asia’s biggest economy sold its first Australian dollar-denominated Kangaroo bond in August. BLOOMBERG