Indonesia textile producer PT Sri Rejeki Isman Tbk (Sritex) has postponed its plans to issue bonds while PT Bank MNC International Tbk (BBAP), part of MNC group owned by tycoon Hary Tanoesoedibyo, plans to raise $37 million from rights issue.
Sritex postpones bonds issue
Textile producer Sritex has decided to postpone its plan to issue bonds worth $420 million (Rp5.67 trillion).
Sritex president director Isman Iwan Setiawan Lukminto said, the company’s board postponed the bonds issue after it decided to rethink its plan to develop its own power plant to meet the need of its textile plants.
“We hold the bonds issue as we earlier wanted to use the proceeds to fund our power plant project,” Iwan Setiawan said, in an announcement.
Sritex said, the company will seek shareholders’ approval again next year if they intended to go ahead with the issue, which was scheduled to be launched this year.
MNC Bank to raise $37m via rights issue this year
Bank MNC is planning to raise capital of Rp500 billion ($37 million) this year through a rights issue. The proceeds will be mainly used to strengthen its capital.
President Director of MNC Bank Benny Purnomo said, the capital increase is aimed at strengthening the bank’s capability to expand its business. The rights issue proceeds will be used to strengthen its core capital to Rp2.2-2.3 trillion this year from Rp1.79 trillion at present.
He said the bank’s capital adequacy ratio (CAR) is also expected to increase to above 18 per cent from 17.9 per cent at end 2015. With the capital increase, the bank expects to boost its lending by 15 per cent this year.
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