Setting a new global precedent for the banking sector, Bank Mandiri set off on roadshows in Jakarta on Wednesday for a $150 million to $175 million lower tier 2 debt issue via UBS Warburg and Mandiri Sekuritas. Pending the success of the 10 non-call five offering, which has already garnered strong onshore support, BNI aims to follow as early as September with a $100 million to $150 million issue via JPMorgan.
Both banks are seeking to emulate the success of the Koreans in early 2000, when Hanvit Bank showed, for the first time, that a non-investment grade bank could raise subordinated debt in size from international investors. Similar to Hanvit, Mandiri and BNI will...
