Bank Mandiri eyes $1.3 B share sale proceeds

Bank Mandiri is set to raise US$1.3 billion early next month in what would be Indonesia’s second-biggest rights offering.

Based on the term sheet obtained by Reuters, the issue price had been set at Rp 5,000 per share, just below the midpoint of the Rp 4,000 to Rp 6,150 range and an 11.5 percent discount to Mandiri’s closing price of Rp 5,650 on Monday.

Most of the capital raised would be used to fund loans while the rest would be used for acquisition opportunities in insurance firms, the bank said.

State Enterprises Minister Mustafa Abubakar said the ministry had reached a decision on Mandiri’s pricing, as well as for Garuda’s initial public offering, but could not announce it yet.

He said the ministry would submit the price to the Capital Market and Financial Institution Supervisory Agency (Bapepam) on Tuesday, with an official announcement expected today.