Bank Mandiri Plans Share Buyback of Rp1.17 Trillion

PT Bank Mandiri (Persero) Tbk (BMRI) plans to conduct a share buyback programme worth a maximum of Rp1.17 trillion.

The state-owned bank also intends to reallocate shares resulting from the buyback in accordance with Financial Services Authority (OJK) Regulation Number 29 of 2023.

According to the company’s disclosure, the buyback can be conducted on or off the stock exchange, either in stages or all at once, and must be completed no later than 12 months after the date of the General Meeting of Shareholders (RUPS) that approves the buyback. The RUPS is scheduled to be held on 29 April 2026.

Bank Mandiri’s management stated that the execution of the corporate action will take into account the company’s liquidity and capital conditions, as well as applicable regulations.

“The company will not conduct a buyback if it would result in a reduction in the number of shares to a level that could significantly reduce share liquidity on the stock exchange,” said BMRI management.

The buyback programme aims to strengthen confidence in the long-term value and prospects of the bank. According to BMRI management, this step is taken as an effort to maintain harmony between market conditions and the company’s fundamentals.

“And to maintain stakeholder confidence in the company’s efforts to support sustainable growth,” management explained.

Furthermore, another purpose of the buyback is to reallocate shares resulting from the buyback for the implementation of employee share ownership programmes to encourage engagement and sustain improved BMRI performance in the long term and/or share ownership programmes for the Board of Directors and Board of Commissioners implemented as performance and risk-based long-term compensation policy in accordance with OJK Regulation No. 45/POJK.03/2015.