Bank Mandiri to begin debt roadshow July 18<\/p>\n
Dow Jones
\nSingapore<\/p>\n
Unperturbed by the market's recent volatility, Indonesia's
\nstate-owned Bank Mandiri is going ahead with its plan for a
\ndollar-denominated bond, and will kick off its roadshow in
\nSingapore on July 18, a source close to the deal told Dow Jones
\nNewswires Tuesday.<\/p>\n
The roadshow will continue in Hong Kong on July 19, before
\nmoving on to London on July 22, and possibly the U.S. thereafter,
\nthe source said.<\/p>\n
Pricing of the bond will likely take place on July 25 or 26,
\nhe added.<\/p>\n
Indonesia's largest state-owned bank plans to issue around
\nUS$150 million in lower tier-two debt, with a maturity of 10
\nyears, non-callable for the first five years, the source said,
\nalthough he added that the size hasn't been determined yet.<\/p>\n
The planned bond issue comes at a time when demand for high-
\nyield debt in the region has flagged, with Asia's dollar-
\ndenominated bond market expected to remain volatile in the next
\nfew months on fears of more corporate accounting scandals and
\njitters surrounding Brazil's presidential election in October.<\/p>\n
Despite heightened risk aversion in the market, Bank Mandiri
\nshouldn't have problems selling its paper since it is a
\nrelatively small issue, the source said.<\/p>\n
\"There's a dedicated Asian base that's looking for high-yield
\nassets,\" the source said.<\/p>\n
Private banks showed strong participation in recent bond
\nissues by Indonesia's biggest instant noodle maker PT Indofood
\nSukses Makmur and mobile telephone operator PT Telekomunikasi
\nSelular Indonesia, also known as Telkomsel.<\/p>\n
UBS Warburg is the lead manager for Bank Mandiri's planned
\nbond issue.<\/p>\n
This is the second time in seven months that the bank is
\ntapping the global debt market. Bank Mandiri sold $125 million of
\nfive-year floating rate notes in December last year.<\/p>",
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