UBS Warburg was mandated yesterday Thursday for a $150 million issue, which is expected launch within the next month. The emergence of the deal is linked to news that the state-owned bank's IPO is being postponed until later this year and is, therefore, more a reflection of Mandiri's desire to make use of the documentation and stay visible with investors rather than any pressing need for fresh capital.
The bank currently has one of the highest capital adequacy ratios of any of the large Indonesian banks. This is because it also has the highest level of government re-capitalization bonds relative to overall assets. These interest bearing bonds carry zero risk weightings and were pumped in...
