Bank Mandiri eyes $221mln rights issue

Move targeted to strengthen capital adequacy ratio and boost lending.

Indonesia's largest lender, PT Bank Mandiri, aims to raise more than 2 trillion rupiah ($221.2 million) via a right issue in the second half of the year or in the first quarter of 2011, its finance director said on Wednesday.

"The value of the rights issue maybe the same as a planned subordinated debt issue," Pahala Mansury, Mandiri's chief financial officer, told Reuters by telephone.

The company has previously said that it planned to raise $200-$300 million in a subordinated debt issue later this year in order to strengthen its capital adequacy ratio and to support higher lending.

However, Pahala said that the rights issue by the state-controlled bank was still subject to the approval of the parliament.

View the full story in News Release Reuters.