Indonesian state-owned lender Bank Mandiri has issued a global bond, also known as an international bond, totaling USD 800 million as part of Bank Mandiri’s USD 4 billion Euro Medium Term Note program, according to reporting from Tempo.
Eka Fitria, Director of Treasury and International Banking at Bank Mandiri, stated that this transaction represents the largest US dollar-denominated debt issuance by an Indonesian bank.
“The funds raised from this bond issuance will be used to support the bank’s business development,” she said in a written statement on Friday (21/3/25.)
Tempo reports that this bond issuance marks Bank Mandiri’s return to the international bond market for the first time since 2003. Bank Mandiri reported that the global bond issuance was oversubscribed, receiving bids 3.5 times the offered amount during the book-building process.
The bond has a maturity of three years and a coupon rate of 4.90 percent. It is listed on the Singapore Exchange. Additionally, Eka Fitria noted that the bond was issued with the narrowest spread in Bank Mandiri’s global bond issuance history, at US Treasury (UST) 3-Year + 113 basis points (bps).
Eka Fitria also disclosed the investor breakdown. Fund managers and asset managers comprised the majority, purchasing 79 percent of the total bond allocation. Banks and financial institutions acquired 13 percent, followed by insurance companies at 4 percent, sovereign wealth funds and public sector entities at 3 percent, and private banks and corporations at 1 percent, according to Tempo.
Furthermore, Eka mentioned that investors from Asia dominated the purchase, accounting for 75 percent. Investors from Europe, the Middle East, and Africa (EMEA) made up the remaining 25 percent. HSBC, J.P. Morgan, Mandiri Sekuritas, and MUFG served as Joint Bookrunners and Joint Lead Managers for this transaction.
Source: Tempo
