Bank Mandiri Raises $800 Million from Oversubscribed Global Bond Issue

JAKARTA, investortrust.id — Indonesia’s largest state-owned bank by assets, PT Bank Mandiri Tbk, has raised $800 million through the issuance of a global bond, drawing strong interest from international investors despite global market volatility. The bond, part of the bank’s $4 billion Euro Medium Term Note program, marks its return to the international debt market since 2023.

The issuance, structured under Regulation S, received 3.5 times more demand than the offering amount during bookbuilding. The three-year note carries a 4.90% coupon and is listed on the Singapore Exchange. Proceeds from the bond will be used to support Bank Mandiri’s business expansion, said Director of Treasury and International Banking Eka Fitria in a written statement on Thursday, March 20, 2025.

Eka emphasized that this was the largest US dollar-denominated bond issuance by an Indonesian bank to date. It also achieved the narrowest spread in the bank’s history for such instruments—just 113 basis points over the three-year US Treasury yield. “This success underscores strong investor confidence in Bank Mandiri’s performance, as well as belief in the bank’s stability and growth potential, even amid global and domestic market uncertainties,” she said.

The bond issue was rated Baa2 by Moody’s and BBB by S&P Global, further affirming investor trust in Bank Mandiri’s creditworthiness.

According to Eka, the investor base was dominated by institutional players, with fund managers and asset managers accounting for 79% of the total allocation. Banks and financial institutions made up 13%, insurance companies 4%, sovereign wealth funds and public-sector investors 3%, and private banks and corporates 1%.

Regional distribution was also highly concentrated in Asia, which represented 75% of the total, while the remaining 25% came from investors in Europe, the Middle East, and Africa (EMEA).

The transaction was arranged by HSBC, JP Morgan, Mandiri Securities, and Japan’s MUFG, which served as joint bookrunners and joint lead managers.