Bank Mandiri has issued USD 750 million in 5-year global bonds, carrying a coupon rate of 5.25% (31/03).

This marks Southeast Asia’s first benchmark USD bond issuance since geopolitical tensions escalated between the United States, Israel, and Iran in late February 2026.

Prudent Market Strategy Enables Successful Launch

Despite a negative US market session, Bank Mandiri carefully monitored market developments after the Asia market opened instead of withdrawing or acting prematurely. Improved market sentiment in Asia and stronger US equity futures allowed the bank to launch the bonds successfully.

An intraday execution strategy was used to manage market volatility while taking advantage of favorable conditions. Bank Mandiri’s established record as a frequent issuer and ongoing engagement with global investors supported the transaction.

Strong Investor Demand Across Regions and Sectors

Ari Rizaldi, Director of Treasury and International Banking at Bank Mandiri, stated, “The strong investor demand and successful outcome of the transaction reflect continued confidence from international investors in Bank Mandiri and Indonesia, despite ongoing global macroeconomic uncertainty and geopolitical volatility.”

The net proceeds will be used for general corporate purposes. Fund and asset managers received 85% of allocations, banks 8%, insurance companies 3%, official institutions, sovereign wealth funds, and public sector investors 3%, and private banks 1%.

Geographically, the bond allocations were distributed across Asia (69%), EMEA (26%), and offshore US investors (5%).

Ratings and Listing Ensure Market Confidence

The bonds received a BBB rating from both S&P Global Ratings and Fitch Ratings. They will be listed on the Singapore Exchange, providing transparency for global investors.

Leading Banks Support Landmark Transaction

The issuance was led by DBS Bank Ltd., HSBC, J.P. Morgan, Mandiri Sekuritas, and Standard Chartered Bank as Joint Bookrunners and Joint Lead Managers, ensuring coordinated execution.

PHOTO: BANK MANDIRI/KONTAN

This article was created with AI assistance.

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