JAKARTA. This year, three state-owned banks plan to issue bonds denominated in foreign currencies or global bonds.
The three banks are PT Bank Mandiri Tbk, PT Bank Rakyat Indonesia Tbk (BRI) and PT Bank Tabungan Negara Tbk (BTN).
President Director of Bank Mandiri, Kartika Wirjoatmodjo, said that Bank Mandiri intends to issue global bonds in April 2019, with a total value of US$ 1 billion, equivalent to Rp. 14.23 trillion (US $ 1 = Rp. 14,237).
Furthermore, Kartika said that the company has no plans to seek funding outside of this year's global bond. Because according to her, last year Bank Mandiri had fulfilled quite a lot of rupiah liquidity needs through a continuous public offering (PUB) with a total value of Rp 10 trillion.
BTN also plans to issue global bonds for the first time with a maximum value of US$ 300 million or around Rp.4.26 trillion.
Finance Director of BTN, Faith Nugroho Soeko, said that the reason behind the corporate action was because the rupiah liquidity in the wholesale market was predicted to be tighter. "The plan is (to issue global bonds) at the end of semester I-2019. The consideration is wholesale fund diversification," he briefly told Kontan.co.id on Tuesday (19/3).
Previously, BRI was also reported to be issuing global bonds this year. Managing Director of BRI, Suprajarto said the funds would be used to cover maturing bonds in 2019 with a value of around Rp 20 trillion. For global bonds, BBRI aims to gain US$ 500 million.
Global bond proceeds from the three state banks will generally be used to strengthen liquidity. (AM/AR)