New Bonds and Sukuk Offering by Medco Energi and Bank Syariah Mandiri

There are two new bonds offering this week they are; i) Medco Energi Internasional, Tbk (MEDC:IJ, idA+/Neg) and Bank Syariah Mandiri (BSM, idAA-(sy)/Stable). Medco sets to issue IDR1trn of Shelf Registration Bond II tranche III in which the public offer sets to be held next week on 15-16 Dec.This is the third bond issuance this year for Medco as the tranche I and II program have been issued in July and September with a combined issuance size amounted to IDR2.5trn. Medco is offering 3 series bonds; Series A (3 year) priced at 10.80%, Series B (5 year) at 11.30% and Series C (7 year) at 11.80%. Secondly, Bank Mandiri Syariah (BSM,idAA-(sy)/Stable) has started the book building for IDR1trn of 7y subordinated sukuk which will run until 16 Dec 2016.The sukuk is guided at equivalent rate of 9%-10% with its net proceeds will be used to i) expand credit disbursement for SMEs ii) strengthen capital structure in which the proceeds to be included as tier 2 capital and iii) broaden long term capital portfolio.

Primary Activity in June Gets Lighter With New Deals Keep Flowing

BNI Banks Issued IDR3trn Bonds

Primary Activity Boosted by Multifinance Bonds Offer

Foreign Exchange Reserve Shrinking USD580Mn

Manufacturing Industry Improvement