JAKARTA (TheInsiderStories) - PT Bank Mandiri Taspen (Bank Mantap), the unit of state-owned lender, PT Bank Mandiri Tbk (IDX: BMRI), seeks fresh funding of Rp2 trillion (US$140.35 million) from the domestic bond market to strengthen the capital, the company announced on Monday (03/01). The Notes have two series with interest rate 6.5 percent and 7.25 percent per year, respectively.
The issuer set the public offering period for the bond on March 15 - 16, the allotment date on March 17, and listing on the third week of March 2021. As part the financial group to strengthen Bank Mantap capital, the parent has injected funds by absorbing the unit’ new shares.
After the rights issue, Bank Mandiri ownership increased from 51.08 percent to 51.10 percent. The other shareholders are PT Taspen with ownerships of 48.44 percent and Ida Bagus Made Putra Jandhana with 0.46 percent. During last year, the bank’ loans growth rose by 26.3 percent to Rp25.65 trillion to Rp20.31 trillion.
To improve the capital, CEO of Bank Mandiri, Darmawan Junaidi, plans to releases global bonds around $750 million in this year. Of the total, $300 million will issues as a green bond.
During last year, one of the largest bank in Indonesia, reported the net profit dropped 37.71 percent from Rp27.48 trillion to Rp17.1 trillion. The decline was due to an increase in the allowance for impairment losses to Rp 22.89 trillion from Rp11.89 trillion during 2019. This is in line with the skyrocketing of non-performing loans from 2.33 percent in 2019 to 3.09 percent in 2020.
The net interest income and net premiums also fell 5.27 percent to Rp58.02 trillion. However, fee-based income increased 4.92 percent to 28.69 trillion. He also reported, total lending of Bank Mandiri contracted 1.61 percent in annual basis, although still better than the 2.41 percent contraction experienced by the national banks.
“We implemented a prudent and selective lending policy to targeted customers taking into account potential sectors and faster recovery. As a result, we were able to maintain our credit quality,” said Junaidi.
Recently, the Financial Service Authority (FSA) estimated that banking loans to grow around 7.5 percent in this year based on the business plans of the lenders, said the chairman last week. The third party deposit its also expecting to arise by 11 percent in 2021 compared to previous year.
The chairman, Wimboh Santoso, said to support this year targets, the agency has prepared various strategic policies. He also reported, total outstanding loans of the banks was contracted 2.41 percent in 2020 caused of the COVID-19 pandemic.
In 2020, he was revised down the Indonesian bank credit growth from initial targets to grow 11 percent. Even though its slowing down, he is optimistic that bank loans will gradually improve and start normal again at the beginning of 2021. He was optimistic that bank’ bad loans still be maintained in the range of under 3 percent inline with the implementation of the debt restructuring.
The latest Banking Survey conducted by Bank Indonesia pointed out the declining of new loan growth in the second quarter (2Q) of 2020, with the weighted net balance of demand for new loans deteriorating significantly to minus 33.9 percent compared with 23.7 percent in the previous period and 78.3 percent in the 2Q of 2019.
Respondents confirmed the declining growth of all loan types, especially in investment loans. They predicted looser lending policy in the 3Q of 2020, as indicated by a marked decline in the Lending Standard Index to 3.9 percent from 34.4 percent in the previous period.
The banks expected to ease lending standards on all loan types through credit lines, collateral requirements and loan maturity. The latest survey also indicated slower credit growth in 2020. Respondents predicted credit growth in 2020 at 2.5 percent in annual basis, lower than credit realization in 2019 at 6.1 percent.
US$1: Rp14,250
Written by Editorial Staff, Email: theinsiderstories@gmail.com
