Bank Mandiri targets international bank status

The lender aims to pass Bank Indonesia’s standard for making Indonesian lender global via right issue.

Bank Mandiri is sure it can obtain international status after getting additional capital from the rights issue.

“We will be the only bank that fulfills the requirements of an international bank according to Bank Indonesia’s standard,” said the Mandiri Bank President Director Zulkifli Zaini in his office last week.

The Bank’s shareholders agreed on the plan to sell 2.33 billion of new shares. The shares will be sold at Rp 5000 ($0.55) each and they expect to collect funds totaling Rp 11.68 trillion ($1.29 billion). According to Zulkifli, the funds will be used as additional capital to achieve a 20 percent credit growth in the next five years, as stated in a report in TEMPO.

Mandiri Finance Director Pahala Mansyuri added that the company’s equity amount was now Rp39 trillion ($4.32 billion). If funds from the rights issue and 2010 profits are added, Mandiri’s capital would amount to Rp50 trillion ($5.54 billion). That does not include the withdrawal of bad debts that might amount to Rp 2.4 trillion ($266.07 million) (About Rp 1.4 trillion ($155.21 million) from the sales of PT Garuda Indonesia share). “The criteria for an international bank is a minimum capital of Rp50 trillion ($5.54 billion) so hopefully we can achieve this,” said Pahala.