Indonesia's best corporate and investment bank 2019: Mandiri Sekuritas
In terms of both quality and quantity, Mandiri Sekuritas’ corporate and investment banking business impresses. During the Asiamoney awards period, the securities house – which is a subsidiary of Bank Mandiri – ranked third for investment banking revenue in Indonesia, earning $11 million for a 5.5% market share, behind Standard Chartered in first and BNP Paribas in second place, according to Dealogic data.
On the Indonesia debt capital markets bookrunner league table by volume, Mandiri Sekuritas came first with credits for $2.12 billion, working on 41 deals for an impressive 10.3% market share. In second place was Citi with credits of $1.8 billion and 8.9% of the market, according to Dealogic. Mandiri also led the way in loans, coming first with credits of about $1.8 billion for a 13.9% market share.
The firm performed spectacularly last year, with revenues of Rp540 billion ($40 million), its highest in 18 years, thanks to the efforts of Silva Halim, director of Mandiri Sekuritas, and her team as they aim for a dominant position across asset classes.
How has it done that? Bankers at Mandiri Sekuritas have focused on building a strong equity research and distribution team, expanding the fixed income business to beyond just plain vanilla bonds and turning their attention to having a solid and sustainable domestic investor base for distribution.
The firm has steadily made progress on the M&A front, having started the business just a couple of years ago. It has been working actively with boutique banks to offer M&A advisory services. Its presence is still small, but it hopes to win a bigger share of the pie over the next few years.
What is also notable is that alongside the long list of companies it has supported across DCM, ECM and loans, it has also tried to make Indonesia’s capital markets more sophisticated.
Mandiri Sekuritas brought the first corporate wakala bond to the market with Medco Power. It tried to introduce an Indonesian rupiah-denominated perpetual bond that unfortunately did not get much love from the country’s conservative investor base, and it is also trying to boost the issuance of project bonds, which again is a slow process as the buy side needs more education.
But rivals say its efforts at diversifying product offerings are being noticed, and that sooner rather than later, the firm will be able to break new ground for Indonesia’s capital markets. For its valiant efforts at taking the country’s market to a new level, Mandiri Sekuritas deserves recognition.