Mandiri to issue eurobonds

The Jakarta Post, Jakarta

Bank Mandiri, the country's largest bank in terms of assets, plans to issue eurobonds in October or November this year to help finance part of its maturing dollar-denominated debts, the bank's vice president director said.

I Wayan Pugeg said on Friday the bank was likely to issue as much as US$150 million in eurobonds to refinance some of its maturing offshore debts amounting to between $300 million and $400 million this year.

The remaining offshore debts will be financed by the bank's internal funds.

"We plan to issue eurobonds soon in October or November. We are currently still in the process of selecting several overseas financial advisors for the plan," Pugeg said.

The central bank had recently agreed to allow Mandiri to issue the offshore bonds to a value of up to $1 billion, he said.

The bank has tapped the offshore debt market several times in the past few years.

Mandiri shares ended higher by Rp 25 to Rp 1,250 on the Jakarta Stock Exchange on Friday.

On other matters, Pugeg said if Mandiri managed to win a tender for a controlling stake in Bank Permata, the country's seventh-largest lender in terms of assets, the bank was likely to merge Permata in order to reap the maximum value of its investment.

Mandiri is forming a consortium with Mandiri Securities, Bank Buana and PT Sari Dasa Karsa, to join in the bidding contest for Permata. Sari Dasa is the 43.45 percent owner of Buana, the country's 11th-largest bank in terms of assets,

The government, which has a 97.17 percent stake in publicly listed Permata, is currently in the process of selling 51 percent of its shares in the bank to strategic investors, in a bid to raise cash to finance the state budget deficit.