Bank Mandiri wants to accelerate the growth of foreign currency credits, and it incorporates a plan to issue debt instruments worth US$2 billion to its business plan this year, the bank`s finance director, Panji Irawan, stated here on Monday.
"The fund may be obtained from the issuance of bonds, negotiable certificate deposits (NCD), medium-term notes (MTN), and bilateral loans," he noted.
To obtain rupiah-denominated funding, the bank will issue medium-term notes or make bilateral loans worth Rp10 trillion, he added.
"In total, the combination (of debt instruments) this year will be valued at Rp40 trillion," he remarked.
In addition to the non-conventional funding, Bank Mandiri has also targeted the growth of third-party fund placement at 10 percent for this year, he revealed.
Bank Mandiri President Director Kartika Wirjoatmodjo explained that the liquidity condition remains a challenge for the Indonesian banking industry. The liquidity in 2018 posed a challenge as the third-party fund placement only grew 8 percent year-on-year.
The bank also wants to boost the growth of foreign currency credits this year. Hence, the bank feels it necessary to issue debt instruments in foreign currencies to meet its funding needs to finance foreign currency credits.
The bank has set the target of credit growth for 2019 at 12-13 percent.
Reporting by Indra Arief Pribadi
Editing by Suharto