JAKARTA (TheInsiderStories) – One of the largest bank in Indonesia, PT Bank Mandiri Tbk (IDX: BMRI) eyes fresh funding from local bond around Rp1 trillion (US$66.67 million), said the company in a prospectus released on Monday (05/04). The bond issuances part of continues bonds worth of Rp20 trillion in two years period.
Based on the prospectus, the bond has two series. Series A with targets Rp350 billion have a fixed interest rate of 7.5 percent per year. Then, Series B with total emissions Rp 650 billion offered with a fixed interest rate of 8.30 percent in annual basis.
Bank Mandiri set the public offering will take place on May 5 – 6 and listing on the Indonesia Stock Exchange on May 13. This bond has been rated AAA with a stable outlook from PT Indonesian Rating Agency.
The state-owned bank has appointed five underwriting companies, namely PT Mandiri Sekuritas, PT BNI Sekuritas, PT Danareksa Sekuritas, PT BCA Sekuritas, and PT Trimegah Sekuritas Indonesia Tbk.
Beside Rupiah bond, Bank Mandiri also planned to issue global bonds up to $2 billion in 2020. The proceed will be used for debt refinancing and business expansion.
Based on official data, the company ha bond will matured this year and 2020, with a value dozens of trillion. Last year the lender had released global bonds of $750 million to improve the structure of foreign currency funding, which had tightened at the end of 2018.
PT Bank Mandiri Tbk (IDX:BMRI), to expand its businesses to Philippines, Malaysia and Vietnam, the director told reporters on Monday (12/09). While, the shareholders appoints Royke Tumilaar as the new CEO and vice minister for State Own Enterprises (SOEs) Kartika Wirjoatmodjo as the chairman of the state-owned bank.
The government also appointed former president director of PT Mandiri Sekuritas, Silvano Rumantir as finance and strategy director to replaced Panji Irawan. In addition, the shareholder also picked Chatib Basri as the deputy chairman of the lender.
According to the director, Darmawan Junaidi, Bank Mandiri intends to acquire or merge with banks in Philippines. There are huge opportunities in the country as not many retail banks operate there, he adds.
He asserted, the lender will use the Qualified ASEAN Banks arrangement to enter Malaysia and in Vietnam, the lender will open new office focusing in micro financing. To support the plan, the state-owned bank will optimize their own capital. He explained, the expansion is part of the company long-term plan.
Tapped as the new CEO on December 2019, Royke Tumilar, who previously served as the corporate banking director said, Bank Mandiri‘ focus would be virtually the same as the prior work programs designed by the previous leader. He conveyed the lender would focus on three programs.
“First, we will cement the collaboration between the wholesale and the retail sectors. Then, we would continue its ongoing digital banking. And we would also focus on supporting credit channeling in the commercial sector and the micro, small and medium enterprises,” he told reporters after the shareholders meeting.
In 2020, he estimates the loan growth could rises 10 percent compared to last year amid th COVID-19 pandemic. In the third quarter of last year, total loans of the bank only rose 7.7 percent to Rp841.9 trillion from the same period of 2018 of Rp781.1 trillion.
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