The Jakarta Post
State-owned lender PT Bank Mandiri and its subsidiaries – security firm Mandiri Sekuritas and investment management PT Mandiri Manjement Investasi -- along with state-owned toll road operator PT Jasa Marga are issuing a new investment product called KIK-DINFRA.
KIK-DINFRA stands for Kontrak Investasi Kolektif Dana Investasi Infrastruktur, or collective investment contracts for infrastructure funds, and is aimed at both domestic and global investors, according to a press statement issued by Bank Mandiri on Wednesday.
Bank Mandiri president director Kartika Wirjoatmodjo has said the alternative financing for infrastructure collected through the bourse could be utilized by companies in the infrastructure sector to obtain funds in a cost-effective way.
“This initiative will help expand the domestic financial market by introducing a new investment product for infrastructure,” said Kartika on the sidelines of the 2018 IMF-World Bank Annual Meetings in Nusa Dua, Bali on Wednesday.
Previously, Bank Mandiri and Mandiri Sekuritas helped Jasa Marga to issue a Komodo Bond, a rupiah bond, in the international stock market worth Rp 4 trillion (US$263 million) late last year, and private equity funds (RDPT) to finance toll road projects by Jasa Marga.
KIK-DINFRA is expected to obtain approval from the Financial Services Authority (OJK) on Thursday and will soon to be traded on the stock market with a target of raising Rp 1.5 trillion.
Meanwhile the funds raised through the RDPT for Jasa Marga’s capital expenditure have already reached Rp 3 trillion.
Kartika said the issuance of KIK-DINFRA was another commitment by Bank Mandiri Group in support of the government’s efforts to accelerate infrastructure development. (bbn)