Friday, November 13, 2009

Bank Mandiri obtain US$105 million loan

PT Bank Mandiri Tbk has signed a $105 million loan facility with the Asian Development Bank (ADB) to strengthen its financing structure.
The borrowing consists of a direct loan of $75 million with a seven-year maturity from ADB and another $30 million loan from global financial institution, ING Bank N.V, which carries a maturity of five years.
Director for Treasury & International Banking at Bank Mandiri, Thomas Arifin, said his bank's main consideration in signing the loan facility is ADB's good international reputation.
"ADB is known as a multilateral institution with a strong commitment to addressing environmental issues and focuses on promoting economic development and poverty reduction in Asia," he said today.
The long maturity of the loan is in line with Bank Mandiri's goal of strengthening its long-term financing structure and the pricing was also competitive, Thomas added.
"The loan facility is very timely given Bank Mandiri's plan to expand at a time when the world economy has not yet fully recovered from the global financial crisis. The loan should allow Bank Mandiri to support the development of environmentally friendly projects and contribute to economic development in Indonesia. We hope to become a pioneering eco-friendly financial institution," said Thomas.
Philip Erquiaga, Director General of ADB's Private Sector Operations Department, said Indonesia requires significant investment in infrastructure and other areas of the economy if it is to achieve its economic growth targets.
"ADB sees that Bank Mandiri has the capacity to use the loan facility to meet the growing demand for financing in areas such as infrastructure development. As the dominant player in its market, Bank Mandiri plays a pivotal role in mobilizing long-term funding to meet the investment needs of its clients," he said.
Bank Mandiri is one of the leading banks in Indonesia which provides services for corporate, commercial, micro & retail, consumer finance and treasury & international banking. It has several subsidiaries to support its main business i.e: Mandiri Sekuritas (capital market services), Bank Syariah Mandiri (syariah banking), AXA Mandiri Financial Service (life insurance), Bank Sinar Harapan Bali (SMEs) and Mandiri Tunar Finance (financing services)
As of 30 September 2009, Bank Mandiri's total outstanding loans were around Rp25.5 trillion, or 15.7%, higher on year at Rp188.3 trillion versus Rp162.8 trillion. Its low cost funds have increased by 17.6% from Rp143.8 trillion to Rp169.1 trillion over the same period. The net interest margin has dropped to 5.21% from 5.46% while the Cost Efficiency Ratio (CER) has dropped to 39% from 43.0%. The net non performing loan ratio remained steady at 0.85%. Net profits in the first nine months of 2009 were Rp4.62 trillion, up around 17% from the Rp3.95 trillion registered in the same period in 2008.
ADB, based in Manila, is dedicated to reducing poverty in the Asia and Pacific region through inclusive economic growth, environmentally sustainable growth, and regional integration. Established in 1966, it is owned by 67 members – 48 from the region. In 2008, it approved $10.5 billion of loans, $811.4 million of grant projects, and technical assistance amounting to $274.5 million.

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