TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
Mandiri to raise Rp 9.3 trillion from upcoming right issue
Patriot banks: Bank Mandiri president director Budi Gunadi Sadikin (right to left), secretary general of the Indonesian Youth Caucus (KMI) Rouf Qusyairi, Supreme Audit Agency (BPK) member Achsanul Qosasi and chairman of the House of Representativesâ Commission VI Ahmad Hafiz Thohir speak at a seminar titled âBanking Industryâs Commitment on National Developmentâ in Jakarta on Tuesday
Change Size
P
span class="inline inline-center">Patriot banks: Bank Mandiri president director Budi Gunadi Sadikin (right to left), secretary general of the Indonesian Youth Caucus (KMI) Rouf Qusyairi, Supreme Audit Agency (BPK) member Achsanul Qosasi and chairman of the House of Representatives' Commission VI Ahmad Hafiz Thohir speak at a seminar titled 'Banking Industry's Commitment on National Development' in Jakarta on Tuesday. JP/Ricky Yudhistira
State-owned Bank Mandiri expects to raise Rp 9.3 trillion (about US$736 million) from the issuance of new shares during a rights issue to be held later this year, sources have said.
The Jakarta Post's sources at the State-Owned Enterprises (SOE) Ministry, speaking on condition of anonymity because of a lack of authorization to discuss the issue, said on Tuesday that the amount of shares to be released would be around 10 percent.
'Ten percent, more or less, would be enough,' one source said, adding that preparations were underway for the government to ask for lawmakers' approval.
The government, which is Mandiri's majority shareholder with a 60 percent stake, is required to gain approval from lawmakers at the House of Representatives for any rights issue by an SOE.
No date has been scheduled for the rights issue or for the meeting between the government and lawmakers at the House's Commission VI, which oversees SOEs.
As reported by Kontan newspaper, State-Owned Enterprises Minister Rini Soemarno confirmed on Monday that the government would inject about Rp 5.6 trillion into the lender through the planned rights issue, while the public would provide about Rp 3.7 trillion.
If the plan is realized this year, it will be Mandiri's first rights issue since 2011, when the bank reaped about Rp 11.68 trillion from shareholders.
The lender currently has 23.33 billion in shares outstanding and around Rp 251 trillion in market capitalization on the Indonesia Stock Exchange (IDX).
As of Tuesday, the lender is the seventh-largest listed firm in terms of market capitalization on the IDX.
Separately, Mandiri president director Budi Gunadi Sadikin said the rights issue plan had been laid out in the 2015 banking business plan.
He said that its capital adequacy ratio (CAR) would surge beyond 17 percent after the rights issue, and that the additional capital would help the lender channel higher sums of loans.
'Taking into account a conservative CAR of 10 percent, we can leverage our lending by 10 times,' he said, adding that Mandiri would be able to offer dozens of trillion rupiah in additional loans that might be raised from its capital. The bank aims to post 15 to 17 percent growth in its loans this year, but it may raise the target after holding the rights issue.
'We have many business segments that we are looking to tap, including infrastructure. This is also in line with the government's call for state banks to channel loans to spur economic growth,' Budi told reporters.
In the infrastructure segment, the bank's outstanding loans currently stand at around Rp 65 trillion.
Mandiri already has big clients in infrastructure, such as miner Aneka Tambang, airport operators Angkasa Pura I and II, seaport operator Pelindo II and electricity firm PLN.
After news of the rights issue plan surfaced, Mandiri's shares dropped 0.7 percent to Rp 10,750 apiece on the IDX from the day before.
Bank Mandiri, the country's largest bank in term of assets, booked net profits of Rp 14.5 trillion as of the third quarter last year, a 12.9-percent increase from Rp 12.8 trillion in the same period in 2013.
Outstanding loans totaled Rp 506.5 trillion rupiah during the first nine months last year, a 12.4-percent increase from Rp 450.8 trillion in the same period in 2013.
