Intends to sell up to US$800 million in bonds in 2013.
PT Bank Mandiri, Indonesia’s largest lender by assets, may sell rupiah and dollar-denominated bonds next year to boost lending in Indonesia. Finance Director Pahala Mansury said the bank intends to sell between US$500 million and US$800 million in bonds.
He noted the bank could sell bonds, preferably rupiah-denominated notes, or do bilateral financing.
“It may be dollar-denominated bonds, but most probably it will be in rupiah-denomiated bonds,” he said.
Bank Mandiri and other Indonesian commercial banks are gearing up to boost lending to meet rising demand by the country’s consumers and corporations. Lending by the country’s 120 commercial banks is forecast to rise 25% this year.
Most commercial banks typically submit their plans, such as lending growth targets and source funds, including bond sales, to the central bank. The central bank, Bank Indonesia, will announce those plans during a bankers’ dinner.
Bank Mandiri is also seeking to acquire a local bank with total assets between Rp 10 trillion to Rp 20 trillion in support of the government call for bank consolidation, according to industry sources.
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