<article><a style="color: #000080;" href="http://www.maybank.co.id/" target="_blank">PT Bank Maybank Indonesia Tbk (BNII)</a>, a local unit of Malaysia&#8217;s largest lender <a style="color: #000080;" href="http://www.maybank.com" target="_blank">Malayan Banking</a>, is planning to raise Rp 2.2 trillion ($174 million) from a bond and sukuk offering.</article>

<a style="color: #000080;" href="http://www.maybank.co.id/" target="_blank">PT Bank Maybank Indonesia Tbk (BNII)</a>, a local unit of Malaysia&#8217;s largest lender <a style="color: #000080;" href="http://www.maybank.com" target="_blank">Malayan Banking</a>, is planning to raise Rp 2.2 trillion ($174 million) from a bond and sukuk offering.
Maybank Indonesia community financial services director Jenny Wiriyanto said, on Friday, proceeds from the bonds will be used for general business development. The bank will focus on boosting credit disbursement and productivity from existing branches.
“We know that we should diversify our source of funding, so instead of solely relying on third-party funds, we decided to raise (funds) from the market,” said Wiriyanto.
<a style="color: #000080;" href="http://www.fitchratings.co.id/" target="_blank">Fitch Ratings Indonesia</a> has assigned a AA+ rating to the bonds, which will be issued by Maybank Indonesia’s subsdiary <a href="http://www.maybankfinance.co.id/" target="_blank">PT Maybank Indonesia Finance (MIF).</a>
The bonds will have a maturity of three years and five years. The bonds will be issued under MIF&#8217;s existing senior debt programme II of up to Rp 5 trillion.
Maybank Indonesia recorded a 9.4 per cent rise of net interest income last year, from Rp 5.93 trillion in the previous year to Rp 6.49 trillion. Maybank Indonesia&#8217;s NIM — an indicator of a lender&#8217;s effectiveness in its lending decision — rose to 4.84 per cent from 4.76 per cent.
Meanwhile, fee based income increased 41 per cent to Rp 2.7 trillion last year from Rp 1.94 trillion in 2014. Loan growth reached 5.9 per cent to Rp 112.5 trillion in 2015 with business banking loan growth leading by 13 per cent on a yearly basis.
<h3>Fintech collaboration</h3>
Wiriyanto said, Maybank Indonesia is fully aware of the rising trend of fintech services, that are beginning to gain popularity in the country as its traditional banking industry tries to catch up with technology.
In Indonesia, a wave of fintech startups and crowd funding sites has begun tapping the growing tech-savvy population of southeast Asia’s largest economy.
Among them are peer-to-peer lending platform <a href="https://modalku.co.id" target="_blank">Modalku,</a> mobile recharge platform <a style="color: #000080;" href="https://www.sepulsa.com/" target="_blank">Sepulsa</a>, e-commerce financing company <a style="color: #000080;" href="http://www.kredivo.com/" target="_blank">Kredivo</a>, online micro-lending company <a style="color: #000080;" href="https://uangteman.com/" target="_blank">UangTeman</a> and many others.
“We know that the trend of going digital is inevitable because this is what’s appealing to our future target market: the millenials. In fact, we are currently preparing a special digital product for them, collaborating with fintech startups,” said Wiriyanto.
Wiriyanto also revealed that the bank is considering to set up its own venture capital arm, which will be dedicated for fintech startups financing.
Without disclosing details, Wiriyanto said that the bank is actively engaged in talks with fintech companies to hear their suggestions and ideas.
“I can’t tell you for sure when the VC arm is going to be launched, but I can say that we are definitely in intense discussions about it,” she said.
In January, Indonesia’s largest bank in terms of assets <a style="color: #000080;" href="http://www.bankmandiri.co.id/" target="_blank">PT Bank Mandiri Tbk (BMRI)</a> launched a VC business unit called <a style="color: #000080;" href="http://mandiri-capital.co.id/" target="_blank">PT Mandiri Capital Indonesia (MCI)</a>, to invest in promising fintech startups.
With an initial capital of Rp 500 billion ($36.9 million), the new venture arm will nurture incubators, cooperate with other VC firms as well as faciliate deal flow to startups.
Also Read:
<a style="color: #ff0000;" href="http://www.dealstreetasia.com/stories/indonesias-bank-mandiri-launches-venture-capital-targeting-fintech-startups-28697/" target="_blank">Indonesia: Bank Mandiri launches VC unit, targets investments in fintech</a>
<a style="color: #ff0000;" href="http://www.dealstreetasia.com/stories/indonesia-to-launch-fintech-regulations-by-the-end-of-2016-38091/" target="_blank">Indonesia to launch fintech regulations by end 2016</a>
<a style="color: #ff0000;" href="http://www.dealstreetasia.com/stories/fintech-here-to-complement-banks-not-compete-indonesia-startups-say-36081/" target="_blank">Fintech here to complement banks not compete, Indonesia startups say</a>
<a style="color: #ff0000;" href="http://www.dealstreetasia.com/stories/32408-32408/" target="_blank">Indonesia plans creation of technology board on IDX for fintech startups</a>

Maybank Indonesia to raise $174m from bond, sukuk issues

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