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Bank Mandiri to issue Rp 5t bonds
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A state-owned lender Bank Mandiri teller serves a customer at a branch in Central Jakarta. (JP/Dhoni Setiawan)
S
tate-owned lender Bank Mandiri expects to raise Rp 5 trillion (US$375.6 million) from an upcoming bonds issuance to support its long-term financing of infrastructure projects.
The upcoming issuance will take form in two types of securities, namely coupon-bond and zero-coupon bond. The lender will become the first bank in the country to issue such debt papers, said wholesale banking director Royke Tumilaar.
“We will use the funds to improve our funding structure because generally, infrastructure projects need long-term financing, such as up to 10 years,” he said in a press conference on Monday.
For the zero-coupon bond, Mandiri offers a three-year tenor and yields ranging from 7.4 to 8.15 percent.
As for the coupon-bond, it will be divided into A series with five-year tenor and yields ranging from 7.7 to 8.45 percent, B series with seven-year tenor and yields between 7.95 percent and 8.7 percent, and C series with 10-year tenor and yields from 8.05 percent to 8.8 percent.
The book-building will be carried out from May 5 to 22, while the public offering is expected to take place from June 9 to 12.
The bank has appointed five securities firms as underwriters for the bond issuance, namely Mandiri Sekuritas, Bahana Sekuritas, BCA Sekuritas, BNI Sekuritas and Danareksa Sekuritas.
“However, we have yet to decide the tranches [values] for each bond type because we are still monitoring the market progress,” said Mandiri Sekuritas president director Silvano Rumantir. (bbn)
