Several major banks in the systemic category are planning to issue convertible bonds as part of a recovery plan to strengthen their capital. PT Bank Central Asia Tbk (BCA) will issue a sustainable subordination bond I, with a total value of Rp 1 trillion. The goal is to increase capital and strengthen long-term fund structures.
Bank Mandiri also plans to issue convertible bonds worth Rp 1 trillion. “We will conduct market tests in advance to see market perception,” Bank Mandiri President Director Kartika Wirjoatmodjo said. With the bond issuance, the capital adequacy ratio (CAR) of the state bank is expected to be maintained at 20 percent.