Investors have snapped up Indonesian stocks .JKSE and bonds over the past 18 months, attracted by strong economic growth fuelled by domestic demand and commodities exports.
The stock index hit a record high last month, prompting several companies to push ahead with plans for share offerings.
"The rights issue plan is to sell 2.33 billion new shares, or the equivalent to 10 percent" of the capital," said Mandiri's president director, Zulkifli Zaini, adding that the issue would probably go ahead around December 11-13.
"The expected capital to raise from the rights issue is about 13-14 trillion rupiah," he added.
As recently as July, Mandiri said it planned to raise 7 trillion rupiah. [ID:nJKB003783]
The bank also said that it sees loan growth this year of over 20 percent, driven by strong domestic demand.
"We expect to beat our full-year forecast of loan growth of about 20 percent. We should beat the target, the growth will exceed it," said Zaini. "Strong domestic demand will be the main driver for our loan growth."
Indonesia's biggest bank by assets also said it would set up an insurance joint venture and would inject 500 billion rupiah ($55.71 million) in its sharia unit.
"We have given the commitment to inject up to 500 billion rupiah in our shariah unit. We also plan to set up new general insurance with an international partner by the end of the year. We see insurance as a promising sector for growth in the future," Zaini said. (Reporting by Janeman Latul; Editing by Sara Webb and David Cowell)
http://www.reuters.com/article/financialsSector/idUSJAK8898920100818 Wed August 18, 2010
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