Bank Mandiri to boost lending with bond sale

Rupiah and dollar-denominated bonds.

These may be up for sale by Bank Mandiri to boost lending.

It plans to sell between $500 million and $800 million in bonds next year, said Pahala N. Mansury, the finance director of the company.

Pahala noted that it will depend on market conditions and that the plan would either be through bonds or bilateral financing.

He said the bank prefers to sell rupiah-denominated notes rather than dollar-denominiated bonds.

Despite the global financial crisis and economic uncertainty, many Indonesian commercial lenders are gearing up to boost their lending activities in the archipelago to

meet rising demand by the country’s consumers and corporations.

Net income at Bank Mandiri rose to Rp 11.1 trillion in the first nine months, up 21 percent from the same period last year. Its net interest income rose 27 percent to Rp 21.6 trillion in the first nine months of 2012.

Bank Mandiri is also seeking to acquire a local lender with total assets between Rp 10 trillion to Rp 20 trillion, Iaccording to Zulkifli Zaini, president director of Bank Mandiri on Wednesday.

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