JAKARTA (TheInsiderStories) – One of the largest lender in Indonesia, PT Bank Mandiri Tbk (IDX: BMRI) planned to issue global bonds up to US$2 billion in 2020, the director told media on Tuesday (10/22). The proceed will be used for debt refinancing and business expansion.
Finance Director Panji Irawan explained, the company has bond will matured this year and 2020, with a value dozens of trillions. “This year there are dozens of trillions of maturing bonds, next year there are also dozens of trillions,” he adds.
Earlier, Bank Mandiri had released global bonds of $750 million. The CEO Kartika Wiroatmodjo, explained that the corporate action through global bonds issuance was the lender’ priority to improve the structure of foreign currency funding, which had tightened at the end of 2018.
Beside Bank Mandiri, other state-owned lender, PT Bank Negara Indonesia (IDX: BBNI) also considered to issue global bonds $500 million in the first quarter of 2020. The proceeds also will be used for debt refinancing and loan expansion.
Director at the bank, Bob Tyasika Ananta, revealed the company paid attention to the timing and movement of the interest rate before release the global bonds. Beside publish global bonds, the bank has issued negotiable certificates of deposits (NCD) with worth of Rp2.39 trillion ($165.90 million). The NCD divided in five series.
He elaborated, Series A have a nominal values Rp430 billion with tenure three months and discount rate 6.3 percent per annum. Series B with total amount Rp250 billion have a discount rate 6.5 percent and a six month tenure.
Series C with tenure nine months and a discount rate of 6.59 percent worth of Rp50 billion. Series D with a nominal Rp1.6 trillion with one year tenure and a discount rate 6.69 percent. Finally, the Series E was issued with value of Rp50 billion have a discount rate of 6.79 percent and one year tenure.
The NCD was issued on Sept. 25 and offered through a private placement. The corporate action helped by PT BNI Sekuritas, PT Mandiri Sekuritas and PT Danareksa Sekuritas.
The other state lender, PT Bank Tabungan Negara Tbk (IDX: BBTN) also plans to issue bonds with a total value of $461 million. The bonds consist of rupiah-subordinated bonds of Rp3 trillion, and junior global bonds of $200 million to $250million.
Director at the bank, Nixon Napitupulu explained, the company plans to issue rupiah-subordinated bonds before the end of December 2019. While for junior global bonds, they will be issued in the fourth quarter of 2019, November 2019 or no later than January 2020.
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