Thursday, November 5, 2009

Bank Mandiri will issues dollar US bonds

PT Bank Mandiri Tbk seeks option to issue US dollar bonds amidst the good progress of financial market situation.
President Director of Bank Mandiri Agus DW Martowardojo unveiled the company has invited some securities companies to talk about the plan.
"If market condition is possible, we will continue to issue US dollar bonds," he said recently.
Bank Mandiri will increase the number of subdebt issuance as from IDR3 trillion scheme into IDR5 trillion. The action will be taken if the demand exceeds the offer.
Bank Mandiri has assigned four securities companies to become underwriters, namely
PT Bahana Securities, PT Danareksa Sekuritas, PT Trimegah Securities Tbk, and PT Mandiri Sekuritas.
He ensured the company will hit the market in the third week of the month to offer the bonds.
The company expected the condition of government bonds (SUN) which becomes the reference will become conducive currently and make yield remaining low.
The coupon provided by the company to the investors would not go high and the value could have maximum rise.
Subdebt becomes alternative among banks to boost up the capital adequacy ratio (CAR).
Half of the bond issuance proceeds could be allotted for the tier two and thus increase the capital adequacy ratio
Subdebt has the same rights (paripasu) with all the existing or the upcoming subdebts.
But bonds have junior claim if compared to the deposit obligation claim and other obligation owned by banks.
Except, there is obligation along with certain requirement with the similar claims or lower than the subdebt.

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