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Indonesian state lender Mandiri to raise capital by US$715m: minister

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Indonesia's state-owned PT Bank Mandiri Tbk will increase its capital by 9 trillion rupiah (US$714.6 million), state enterprises minister Rini Soemarno said on Monday.

[BANDUNG] Indonesia's state-owned PT Bank Mandiri Tbk will increase its capital by 9 trillion rupiah (US$714.6 million), state enterprises minister Rini Soemarno said on Monday.

Bank Mandiri will raise 5.6 trillion rupiah through a rights issue and the government will inject 3.4 trillion rupiah into Indonesia's biggest bank by assets, Mr Soemarno said. This will be subject to the parliament's approval, she added.

Bank Mandiri's dividend payout is "quite large", Mr Soemarno said.

The minister said it will be difficult for all state-owned banks to tap the capital market at the same time, so Bank Mandiri is being prioritised.

The government owned 60.6 per cent of Bank Mandiri as of September 2014, according to Thomson Reuters data.

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