Bank Mandiri Tbk (IDX: BMRI) obtained US$500 Million from the total demand $2.4 billion today (05/06) - Photo: Special

JAKARTA (TheInsiderStories) – Indonesian lender, PT Bank Mandiri Tbk (IDX: BMRI) obtained US$500 Million from the total demand $2.4 billion, said state own enterprises ministry today (05/06). The five-year US Dollar bond sold with coupon rate 4.75 percent. 

The coupon offered is higher than the global bond offered by the government in early April 2020. which offers a 3.9 percent coupon. The investors who bought bond were 66 percent from Asia and 34 percent from Europe, Middle East, Africa and the United States.

Previously, Bank Mandiri received a Baa2 stable rating from Moody’s, BBB-negative from S&P, and BBB-stable from Fitch.

Earlier, the state lender announced to raises around US$2 billion from the Euro Medium Term Notes (EMTN). At the same time, the lender also offered Rupiah bond Rp1 trillion ($66.67 million). The bond issuances part of continues bonds worth of Rp20 trillion in two years period.

The local 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 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 for the bond issuances.

Based on official data, some of its bond will matured in 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.

Bank Mandiri also plans to expand its businesses to Philippines, Malaysia and Vietnam. The director, Darmawan Junaidi said, the lender intends to acquire or merge with banks in Philippines. To support the plan, the state bank will optimize their own capital.

In 2020, the bank targeting 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.

US$1:Rp15,000

Written by Staff Editor, Email: theinsiderstories@gmail.com