Mandiri to offer $1.6bln rights issue in 2011

Date of launching to depend on BNI's rights issue offering scheduled at end of the year.

Bank Madiri, Indonesia’s largest bank by asset value, said it supported the government’s decision to put the Bank Negara Indonesia (BNI) rights issue ahead of its own, Mandiri’s chief financial officer Pahala N. Mansury said Sunday.

Pahala assured that there would be no problems for Bank Mandiri to launch its Rp 14 trillion (US$1.6 billion) rights issue after BNI.

“What worries us is that if the BNI [rights issue] is delayed until after December, which in turn would also mean a delay for us,” he said.

Pahala said BNI needed to file its rights issue documents with the capital market regulatory authority (Bapepam-LK) by Oct. 15 to list if it is committed to its rights issue in February, 2011.

State-Owned Enterprises Minister Mustafa Abubakar previously said the ministry had decided to put BNI’s Rp 10 trillion rights issue ahead of Mandiri’s because BNI needed to strengthen its capitalization.

BNI’s capital adequacy ratio (CAR) stood at 13.3 percent for the first half of this year, and Pahala expects Mandiri’s CAR is between 12.8 and 13 percent by year-end.

View the full story in the Jakarta Post.