PT Bank Mandiri Tbk picks 4 underwriter to handle five year subdebt.
Director Bank Mandiri Thomas Arifin says the company hire Bahana Securities, Danareksa Sekuritas, Mandiri Sekuritas and Trimegah Securities to help with sale of five years until ten years notes.
Bank Mandiri Tbk projected the capital adequacy ratio (CAR) will increase 1.4-1.7 percent following the issuance of IDR3 trillion subdebt.
Bank Mandiri Tbk in semester II/2009 plans to disburse IDR9 trillion credit to meet the target growth of 16 percent.
The subdebt here serves as an alternative for bank to boost up the CAR. Half of the bonds issuance proceeds will be allotted to second tier so the CAR of a bank could be bolstered.
The subdebt has the equal rights (paripasu) with all the existing and the would-be sub debts.
But the bonds have junior claim if compared to the deposit obligation claim and other claims owned by bank, except there is obligation of certain terms and conditions with the same or junior claim as the sub debt.
The sub debt is commonly issued with 10 years tenure with buy option at the fifth year. Would the option be left unrealized, the coupon could rise 10 percent so the bond issuer will have the rights so the effective tenure of the bonds will only be five years.
Tuesday, September 1, 2009
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