(Bloomberg) -- State-owned Bank Mandiri is marketing its first $1 billion syndicated facility, according to people familiar with the matter, signaling a potentially busy year for Asia’s loan market.
Australia & New Zealand Banking Group Ltd., CIMB Bank Bhd., DBS Bank Ltd., HSBC Holdings Plc, Oversea-Chinese Banking Corp. and United Overseas Bank Ltd. are the arrangers to the three-year loan, the people said, who asked not to be identified discussing a private matter.
A spokesperson at Bank Mandiri didn’t immediately respond to a request for comment.
This transaction, the first syndicated loan launch of 2025 in Asia, sets the stage for a likely rebound in the asset class after three years of decline. Loan volumes in Asia Pacific excluding Japan fell 4.6% to $590 billion, the lowest annual tally since 2020, according to Bloomberg-compiled data. The trend is expected to reverse, driven by a pick up in merger and acquisition activity and a favorable interest rate environment.
Bank Mandiri is paying a margin of 65 basis basis points over the risk-free benchmark Secured Overnight Financing Rate, the people said, adding that the transaction has been sent to a limited number of banks as the pricing is relatively thin.
Last year, state-owned Bank Rakyat Indonesia’s closed a $1 billion syndicated loan, offering its lowest-ever margin for a three-year tenor at 70 basis points above SOFR. While BRI’s deal was thought to have been paying too low a return, 19 banks ended up funding the facility.
Bank Mandiri is rated Baa2 by Moody’s Ratings and BBB by Fitch Ratings and S&P Global Ratings, on par with the sovereign.
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