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Bank Mayapada to issue Rp 750 billion in bonds
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A Bank Mayapada customer withdraws money from an automated teller machine (ATM). (Kontan/Daniel Prabowo)
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rivate lender Bank Mayapada Internasional is planning to raise Rp 750 billion (US$56.25 million) from a subordinated bond sale to strengthen its capital structure and boost lending.
The bond sale is the first tranche of the company’s planned bonds issuance of Rp 1.5 trillion, which has a seven-year tenor. All the coupons will be paid every three months.
“The purpose of the issuance of subordinated debts was to strengthen our capital structure,” Bank Mayapada president director Hariyono Tjahjarijadi said in Jakarta.
Read also: Private lender Mayapada wraps up status upgradeMayapada appointed RHB Sekuritas Indonesia as the underwriter for the bond sale. PT Pemeringkat Efek Indonesia (Pefindo) has affirmed an idBBB+ bond rating, indicating a stable outlook. The bonds will have an annual coupon rate of between 10.5 and 10.75 percent.
The lender has set a book building period of Aug. 22 to Sept. 11, and will offer the bonds from Sept. 22-25 before listing them on the Indonesia Stock Exchange on Sept. 29.
Bank Mayapada Internasional is controlled by Indonesian business tycoon Dato’ Sri Tahir through his business empire Mayapada Group, which engages in retail, property and the health-care sector.
This year, the lender has secured a status upgrade as a BUKU III bank, a category that identifies the bank as having a core capital of between Rp 5 trillion and Rp 30 trillion. (bbn)
