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tate-owned lender Bank Mandiri now has something to brag about, a new business unit in Singapore that it expects will help expand regional coverage amid weak banking growth at home.

When one door closes, another one opens, this old proverb seems to suit Mandiri as it looks to venture into the Singaporean capital market with Mandiri Securities Pte. Ltd. or Mandiri Securities Singapore.

As a group, Mandiri recently saw its banking business fall amid the economic slowdown and a rise in bad loans.

Squeezed profitability — in which its total net profits dropped more than 32 percent annually in 2016 — was a bitter pill to swallow.

However, its securities business seemed to be doing fine with sound underwriting activities, and bond and equity trading. The business, along with consumer finance and remittance, also posted higher combined net profits in 2016 compared to 2015.

The obtainment of a full license by subsidiary PT Mandiri Sekuritas in October last year from the Monetary Authority of Singapore (MAS) boosted the group’s confidence.

The Capital Market Services License allows Mandiri Sekuritas, through Mandiri Securities Singapore, to conduct deals in securities, namely bonds and equities, and to give advice on corporate finance. Previous activities only involved debt-paper trading activities.

“We hope Mandiri Sekuritas’ new license in Singapore can attract all of our Indonesian banking clients,” said Bank Mandiri president director Kartika “Tiko” Wirjoatmodjo after inaugurating Mandiri Securities Singapore’s office earlier this week.

At present, a majority of Mandiri’s corporate clients looks to services offered by foreign securities or banks to manage their needs in the capital market as a result of the latter’s global and regional networks.

By having a presence in Singapore — an international finance hub — Mandiri can now claim to have Indonesia’s only investment bank licensed and capable of managing regional capital market business, including the issuance of “G3 global bonds”, or bonds in US dollars, Japanese yen and euros.

In its initial move, Mandiri Securities Singapore became the joint lead manager and bookrunner for the Indonesian government’s US$3 billion Islamic bond, or sukuk, in March.

A month later, the Singapore unit priced its first US dollar global bond worth $625 million for oil and gas company PT Saka Energi Indonesia.

It has now set its sights on sukuk deals and rupiah-denominated global bonds to assist the government in financing its infrastructure projects. It will also tap the fixed income market in Malaysia, which is currently regarded as the world’s Islamic finance powerhouse.

Around 20 to 25 of Mandiri’s corporate clients are seen potential customers for Mandiri Securities Singapore given their routine issuance of securities, carried out through the assistance of foreign investment banks.

Mandiri Securities Singapore is now in talks with at least four clients and is hoping to settle the deals soon, Mandiri Sekuritas managing director Laksono Widodo said.

In the first quarter, Mandiri Sekuritas booked underwriting on equity and financial instruments worth Rp 2.7 trillion ($202.91 million), 80 percent higher than the same period last year.

It aims to contribute Rp 100 billion in profits each year to the group, the fourth-biggest contributor among all subsidiaries.