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Jakarta Post

Bank Mandiri to issue Rp 3t shelf registration bonds

  • Winny Tang

    The Jakarta Post

Jakarta   /   Thu, August 9, 2018   /   10:07 am
Bank Mandiri to issue Rp 3t shelf registration bonds A technician inspects the production of Bank Mandiri cards bearing the National Payment Gateway (GPN) logo. ( A Muchlis)

State-owned lender Bank Mandiri plans to issue shelf registration bonds (PUB) I phase III, with the target of obtaining Rp 3 trillion (US$207.79 million), a bank executive said.

From the PUB I phase I issuance in 2016, the bank managed to collect Rp 5 trillion, while from PUB I phase II issuance last year, it collected Rp 6 trillion.

The proceeds from this year's bond issuance would be used to strengthen the bank’s funding structure and to expand its loan disbursement, Mandiri financial executive officer Panji Irawan said in Jakarta on Wednesday.

“The purpose [of the bond issuance] is to expand loan disbursement. It will be good if Mandiri has a source of funds with five-year tenor for funding diversification, not only from third-party funds,” he added.

Meanwhile, Mandiri treasury and international banking director Darmawan Junaidi said the bonds would have five-year tenor with a coupon rate of between 7.75 to 8.50 percent that was paid quarterly.

The book-building period would be from Aug. 8 to 24, while the public offering was expected to be held from Sept. 14 to 17, he added.

The lender has appointed six securities companies as underwriters -- Mandiri Sekuritas, Bahana Sekuritas, BCA sekuritas, BNI Sekuritas, Danareksa Sekuritas and Trimegah Sekuritas. (bbn)