Mandiri's $500 million global bond oversubscribed by five times
06 May, 2020
State-owned Bank Mandiri has successfully launched its US$500 million global bond as the demand from foreign investors, mostly from Asia and Europe, far exceeded the total amount it offered.
Your debt paper was oversubscribed by almost five times with demand reaching a lot more than $2.4 billion, the lender said in a statement on Wednesday.
“Around 66 percent of the investors that bought the bond originated from Asia, and the rest of the 34 percent originated from Europe, the Middle East, Africa and america,” the lender said in the statement.
The bank said the global bond offered a coupon of 4.75 percent per year, greater than the government’s global bond coupon of 3.9 percent issued in April. The five-year debt paper, Bank Mandiri said, would mature in 2025.
It is the second global bond issued by state-owned companies this month. On Monday, Hutama Karya successfully launched its first ever global bond of US$600 million with a coupon of 3.75 percent. The bond was also oversubscribed by six times from buyers amid popular from investors in Asia, Europe, the center East and the United States.
The bank’s treasury and international banking director Darmawan Junaidi told The Jakarta Post that the arises from the bond issuance will be used to strengthen its financing capacity.
“It will also be utilized to aid our business in the medium to long term,” he said via text.
He went on to say that the issuance of new bonds followed last year’s global bond issuance of US$750 million that was part of the bank’s global bond ticket of US$2 billion.
State-Owned Enterprises (SOEs) Minister Erick Thohir lauded Bank Mandiri’s global bond issuance amid the uncertain global economic conditions.
“Investors' high interest in the global bond shows that Indonesia has become among the world’s most interesting investment destinations,” he said, adding that he also encouraged other SOEs to get other resources of funding and not just depend on funding from banks.
Bank Mandiri’s global bond issuance marks the second time SOEs have issued debt papers to the offshore market amid the COVID-19 pandemic.
Source: www.thejakartapost.com