Bank Mandiri issues global bond amid challenging conditions
PT Bank Mandiri (Persero) Tbk issued a global bond or global debt security worth $750 million maturing on 31 March 2026 amid challenging global conditions, including the ongoing Middle East war.
The debt security has a five-year tenor and a coupon rate of 5.25 per cent. This issuance recorded excess demand or oversubscription of 3.3 times, reflecting high interest from international investors.
Bank Mandiri’s Director of Treasury & International Banking, Ari Rizaldi, stated in Jakarta on Thursday that the high investor interest reflects global confidence in the company’s fundamentals and financial performance.
He added that this step further affirms the solid business foundation to drive accelerating growth amid global market dynamics.
“The results of this transaction show that international investors continue to have confidence in Indonesia’s fundamentals and Bank Mandiri amid challenging macroeconomic conditions and global geopolitical dynamics,” said Ari.
He added that the funds obtained will be used for general corporate purposes to support business growth.
The company noted that high investor confidence is reflected in the diversified distribution, with allocations to fund managers and asset managers (85 per cent), banks (8 per cent), government institutions and sovereign wealth funds (3 per cent), insurance companies (3 per cent), and private banks (1 per cent).
By region, investors come from Asia (69 per cent), Europe, Middle East, and Africa/EMEA (26 per cent), as well as US offshore investors (5 per cent).
This investor diversification, the company noted, reinforces Bank Mandiri’s sustainable advantage in maintaining international market confidence through strong fundamentals and disciplined funding strategies.
Amid market conditions that were temporarily pressured by weakness in the US trading session, the company adopted a prudent approach by waiting for a more conducive momentum at the opening of the Asian market.
In addition, the company implemented an intraday execution strategy to limit exposure to market risks while optimising emerging positive momentum. This strategy proved effective in maintaining transaction execution stability and obtaining a good response from global investors.
This is also supported by Bank Mandiri’s track record as an active issuer in the international market and strong relationships with its investor base, in line with efforts to strengthen the company’s sustainable advantage.
The debt security received a BBB rating from S&P Global Ratings and Fitch Ratings, and is listed on the Singapore Exchange.
The transaction is supported by DBS Bank Ltd., HSBC, J.P. Morgan, Mandiri Sekuritas, and Standard Chartered Bank acting as Joint Bookrunners and Joint Lead Managers.