JAKARTA (TheInsiderStories) – State-owned enterprises are looking for foreign exchange loans to finances its business expansion and debt refinancing. After toll road operator, PT Hutama Karya, now PT Bank Mandiri Tbk (IDX: BMRI) looking fresh funds from Eurobond market.
One of the largest bank in the country 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-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.
“Today the company has announced to potential investors to issue the second EMTN with a principal up to $2 billion,” said the company in an official statement released day (05/05). The similar notes worth of $750 million has issued April 2019.
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.
Bank Mandiri, 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.
Earlier, director, Darmawan Junaidi said, Bank Mandiri intends to acquire or merge with banks in Philippines. He also said, the lender will use the Qualified ASEAN Banks arrangement to enter Malaysia and in Vietnam, and will open new office focusing in micro financing.
To support the plan, the state bank will optimize their own capital. The expansion is part of the company long-term plan.
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.
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