Indonesia's Bank Neo Commerce plans $191m rights issue next year

Indonesia's Bank Neo Commerce plans $191m rights issue next year

President Director Bank and CEO of Neo Commerce Tjandra Gunawan gestures during an interview at his office in Jakarta, Indonesia, November 3, 2022. REUTERS/Ajeng Dinar Ulfiana

Akulaku-backed lender Bank Neo Commerce plans to raise 3 trillion rupiah ($191 million) via a rights issue next year to support its loan disbursal targets and launch several new products, per an announcement on Wednesday.

Tjandra Gunawan, Bank Neo Commerce’s President Director and CEO, said existing investor Alibaba group will participate in the rights issue. However, the Chinese tech giant — through its entities Akulaku and Rockcore Financial Technology — can only increase its ownership in Bank Neo Commerce up to 40%, as foreign entities are allowed to own a maximum of 40% stake in an Indonesian bank.

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