<article>Indonesia state-owned lender <a style="color: #000080;" href="http://www.bankmandiri.co.id/">PT Bank Mandiri Tbk</a> (BMRI) will enter bond market with an issues of at least Rp5 trillion in June or July to finance the long-term loan program, said its chief executive.</article>

Indonesia state-owned lender <a style="color: #000080;" href="http://www.bankmandiri.co.id/">PT Bank Mandiri Tbk</a> (BMRI) will enter bond market with an issues of at least Rp5 trillion in June or July to finance the long-term loan program, said its chief executive.
This year, the bank is seeking a cumulative funding of around $1 billion through bond issuance and bilateral loans.
“We needs around $1 billion funds this year, both in rupiah and foreign exchange currencies. For the foreign exchanges fund, we will search from bilateral loans,” the CEO Kartika Atmodjo said on Wednesday.
He added, the bank plans to issues Rupiah bonds of up to Rp10 trillion, starting this year with tenor between 5 to 7 years.
For the current year, Bank Mandiri plans to take advantage of Bank Indonesia’s recent monetary easing policy and is targeting a loan growth of between 12 per cent to 14 per cent. Last year&#8217;s  figure stands at Rp595.46 trillion.
The fund from bonds and bilateral loans will use to finance the long-term projects with tenure 5-10 years.
<h3>Collaboration with KfW IPEX-Bank</h3>
Bank Mandiri and <a style="color: #000080;" href="https://www.kfw-ipex-bank.de/International-financing/KfW-IPEX-Bank/">KfW IPEX-Bank</a>, the specialist financier for the German and European export industry signed a memorandum of understanding for jointly financing the infrastructure projects in Indonesia.
Director Finance and Treasury of Bank Mandiri Pahala Mansury said, the collaboration with KfW, will provide an additional option to the bank’s corporate clients.
The Bank and KfW IPEX-Bank will examine various alternative infrastructure financing schemes that can be done, including the joint scheme loans, syndicated loans, ECA covered loans, and corporate lending. As for targeted infrastructure projects include transportation in the city, the port and airport.
This cooperation, according to Pahala, is quite important considering the German financial institutions have the capacity (for capital) and strong experience in the field of infrastructure.
&#8220;In addition to the financing scheme, of course, we will also discuss to identify and determine the infrastructure projects are likely to obtain financing while considering the needs and characteristics of the project,&#8221; said Pahala.
According to him, infrastructure development has become one of the main focus of the company&#8217;s financing strategy. That commitments realized through the financing of the construction sector in the first quarter of 2016 reached Rp19.5 trillion, up 2.3 per cent from the same period last year amounting to Rp19.1 trillion.
&#8220;We love to finance transport infrastructure such as port, airport and bring out expertise to the table,&#8221; said managing director KfW, Christian Bevc said.
Last year, Bank Mandiri posted a net profit of Rp20.3 trillion, up 2.3 per cent from Rp19.9 trillion in 2014. Its net interest income rose 16 per cent to Rp48.5 trillion, while fee-based income also increased by 23.7 per cent to Rp18.6 trillion.
Its loans grew at 12.4 per cent in the year to Rp595.5 trillion from Rp530 trillion in previous year, while non-performing loans was kept at 0.90 per cent, lower maximum limit set by the central bank.
Also Read: <a style="color: #ff0000; text-decoration: underline;" href="http://www.dealstreetasia.com/stories/34910-34910/">Bank Mandiri’s new CEO on look out for acquisitions in SEA </a>
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Bank Mandiri plans to raise $379m from bond market in June

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