JAKARTA (TheInsiderStories) - Bank Mandiri on Wednesday (Aug 24) announced its plan to issue Rp5 trillion bonds which will consist of three series - series A, B and C.
Series A bonds will mature in 5 years with coupon rate in a range of 7.75-8.25 percent per annum; Series B bonds will mature in 7 years with coupon rate in a range of 8.15-8.65 percent per annum; and Series C bonds will mature in ten years with coupon rate in a range 8.40-8.90 percent.
Bank Mandiri’s bond plan is part of financing needs of $1 billion in two years time. Beside issuing bonds, the bank will get the other financing from bilateral loans. The bank’s CEO Kartika Atmodjo said, the fund from bonds and bilateral loan will be used to finance the long-term projects with tenure 5-10 years.
This year, Bank Mandiri targets its loans to expand 12 percent to 14 percent from last year figures of Rp595.46 trillion. Last year, Bank Mandiri posted net profit of Rp20.3 trillion, or edged up 2.3 percent from Rp19.9 trillion in 2014. Its net interest income rose 16 percent to Rp48.5 trillion, while fee-based income also increased by 23.7 percent to Rp18.6 trillion.
Its loan grew 12.4 percent in the year to Rp595.5 trillion from Rp530 trillion in previous year. The credit growth helps boost the bank’s assets to Rp910.1 trillion, from Rp855 trillion in previous year.
Majority of these loans were allocated to productive sector of the economy, amounted to Rp463.8 trillion, up 13 percent from previous, in which loan for investment purposes rose 14.2 percent, loans used for working capital rose 12.3 percent. Loans to construction sector in particular accelerated by 4.2 percent, and loan growth to processing industry grew by 21.7 percent.
Loan growth was recorded in almost all sectors, with micro loan grew by 22.9 eprcent to Rp42.5 trillion with total customers of over 1 million, while loans to micro and SMEs (MSMEs) edged up 3.2 percent to Rp75.8 trillion.
Bank Mandiri’s total people’s business loan (KUR) reached Rp21.7 trillion with 466,000 customers. The KUR allocated in 2015 alone reached Rp3.5 trillion with 70,318 customers.
Its third party fund totaled Rp676.4 trillion, up from Rp636.4 trillion in previous year. Of these, the value of cheaper third party funds (savings) amounted to rp443.9 trillion, driven by a rise in savings by Rp19.3 trillion to Rp271.7 trillion.