Bank Mandiri raises $125m from overseas market<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
State-owned Bank Mandiri successfully sold US$125 million of
\nfive-year floating rate euro bonds on Thursday, marking the first
\noverseas bond issue by a government-owned firm since the 1997
\nfinancial crisis.<\/p>\n
The bank said in a press statement that the transaction was
\noversubscribed with 21 investors participating from Indonesia,
\nHong Kong, Singapore, Japan, Europe and the United Kingdom.<\/p>\n
It said that the notes, with three-year put and call options,
\nwere rated B- by Standard & Poor's, two notches above the
\nIndonesian sovereign.<\/p>\n
President and CEO of Bank Mandiri ECW Neloe praised the
\nexecution of the issue, saying: "This is a ground-breaking
\ntransaction for both the bank and Indonesia.<\/p>\n
"This marks the return of the Indonesian government's risk to
\nthe international investor community after an absense of nearly
\nfive years."<\/p>\n
Bank Mandiri used a Hong Kong branch of the Hong Kong and
\nShanghai Banking Corporation Limited (HSBC) as mediator for the
\ntransaction.<\/p>\n
Nick Green, HSBC Head of Investment Banking and Markets in
\nJakarta also welcomed the issue, saying it should serve well to
\nrevive investors's confidence in the country.<\/p>\n
Analysts said that the success story could encourage other
\ncash-strapped Indonesian corporations to tap funds from the
\ninternational market.<\/p>\n
Set up in 1998 through the merger of poorly performing state-
\nowned banks, Bank Mandiri is currently the country's largest bank
\nwith a total assets of Rp 236.6 trillion (some $23 billion), as
\nof September, the equivalent of around 23 percent of total assets
\nof the country's banking system.<\/p>\n
It also employs more than 17,000 people across the country and
\nhas 719 ATMs (Automatic Teller Machines) serving more than six
\nmillion customers.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/bank-mandiri-raises-125m-from-overseas-market-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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