Bank Mandiri to Issue IDR5Trn Bonds
State-owned lender Bank Mandiri, Tbk (BMRI IJ) expects to raise IDR5trn (USD375.6mn) from an upcoming bonds issuance to support its long-term financing on infrastructure projects. The upcoming issuance will take form in two types of securities, namely coupon-bond and zero-coupon bond. The lender will become the first bank in the country to issue such debt papers. For the zero-coupon bond, Mandiri offers a three-year tenor and yields ranging from 7.4% to 8.15%. As for the coupon-bond, it will be divided into A series with five-year tenor and yields ranging from 7.7% to 8.45%, B series with seven-year tenor and yield between 7.95% and 8.7%, and C series with 10-year tenor and yields from 8.05% to 8.8%. The book-building will be carried out from May 5 to 22, while the public offering is expected to take place from June 9 to 12.
