Bank Mandiri Bond Issuance Receives IDR 4,39 Trillion

Lovata Andrean

Bank Mandiri Receives IDR 439 Trillion from the Issuance of Sustainability Bonds
Bank Mandiri Receives IDR 439 Trillion from the Issuance of Sustainability Bonds

Rancakmedia.com – Bank Mandiri bond issuance received IDR 4,39 trillion. Sustainability bonds of US $ 300 million or equal to IDR 4,39 trillion have a term of 5 years with a coupon of 2%.

The issuance of sustainability bonds initially generated new funds of USD 300 million or the same as IDR 4,39 trillion assuming an exchange rate of IDR 14.631 per US dollar.

The proceeds will be used to refinance several projects that are environmentally friendly (green) and socially acceptable.

Sustainability bonds have a term of 5 years with a coupon of 2%. In issuing this sustainability bond, Bank Mandiri appointed Deutsche Bank, HSBC and Mandiri Sekuritas as joint lead managers.

Issuance of Bank Mandiri Bonds

Bank Mandiri Panji Irawan, Director of Treasury and International Banking, said that this was Bank Mandiri's first sustainability bond issuance and as part of the implications of the Action Plan Finance Sustainable (RAKB) which is regulated by companies that have fulfilled the basic sustainability bonds. International Capital Market Association Standard (ICMA).

Issuance of Bank Mandiri Bonds

Apart from that, this work framework is in line with the Association of Southeast Asian Nations (ASEAN) sustainability bond standards, green bond standards and social bond standards.

Panji explained that Bank Mandiri is committed to implementing sustainable financial practices by creating RAKB which is implemented through three strategic pillars. “The three pillars are Sustainable Banking, Sustainable Operations, and Corporate Social Responsibility and Sustainable Financial Inclusion.

"One of the ideas in the "Sustainable Banking" pillar is funding several sustainable sectors such as new and renewable energy and funding several social projects, especially for the MSME and micro segments," said Panji in his press release, Tuesday (13/4/2021).

In the future, said Panji, his faction hopes to continue providing support for government programs to harness and utilize the sizable power of new and renewable energy in Indonesia and achieve the direction of sustainable development.

This sustainability bond issuance received requests of more than 2,5 billion US dollars during the bookkeeping process, resulting in excess demand of more than 8,3x the estimated amount of the bonds issued.

This shows foreign investors' positive understanding of Bank Mandiri's future performance and business prospects.

Positive investor confidence can be seen from the ratings given by international rating agencies, Baa2 from Moody's and BBB- from Fitch, for the bonds. After the issuance process, the bonds will be listed on the Singapore Exchange (Singapore Exchange / SGX).

FAQ

So, here is the question and answer session, questions we have collected from the articles we have submitted, we hope the answers we provide below can be useful.

What are Bank Mandiri Bonds

Securities issued as proof of debt to bondholders, long term (> 1 year), issued with performance, fixed or variable interest rates. Interest is calculated periodically or in advance (discount).

Can Bonds Be Inherited

Indonesian Retail Bonds (ORI) are included in the SBN category which can be traded so they can be transferred. If the investor dies, ORI ownership can be passed on to the heirs.

Where can bonds be purchased

Bonds are traded at primary market and secondary. The primary market is the initial offering and sale of bonds, while the secondary market is the trading of bonds that have been sold in the primary market. To buy bonds on the primary market, investors must participate in an auction.

Conclusion

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Lovata Andrean

Hi, I'm Lovata, I'm not Ai but I am a content writer for SEO, Technology, Finance, Travel, Cooking Recipes and others. I hope this can be useful for all my friends. Thanks