Indonesia: MNC Bank to raise $76m through rights issue

MNC Bank public expose

PT Bank MNC Internasional (MNC Bank) Tbk (BCAP) is looking to raise Rp 1 trillion ($76 million) from a rights issue and series III warrants to strengthen its capital structure.

The private lender has received shareholder approval for the same last week.

In the rights offering, MNC Bank will sell about 5.3 billion shares to existing shareholders at Rp 100 per unit. Proceeds from the rights issue are expected to reach Rp 531 billion ($40.6 million).

Meanwhile, the series III warrants is estimated to bring another Rp 531 billion and will be offered at the same price.

“A stronger capital structure will help the company improve productive assets, boost credit, widen market, thus increasing our income and financial performances,” said MNC Bank president director Benny Purnomo in Jakarta.

He said the bank aims to have a core capital above Rp 5 trillion ($381 million) by 2020, making it eligible to be a member of BUKU III category (groupings that divide lenders according to their core capital).

To achieve the target, the bank is on the prowl to acquire or merge with small to medium-sized banks. He said the plan has been included in the banking business plan (RBB) proposed to the Indonesian Financial Services Authority (OJK) this year.

“I personally want the transaction to take place as soon as possible. But we are still scouring for potential banks with a focus on the consumer segment,” Purnomo said.

In 2015, parent company MNC Kapital planned to take over Recapital Group’s Bank Pundi and merge it with MNC Bank. But the plan was dropped following the government’s interest to take over Bank Pundi.

Digitizing services

This year, MNC Bank has set aside approximately Rp 250 billion ($19 million) for capital expenditure, about half of which (Rp 100 billion ($ 7.6 million) would be allocated for developing digital banking, Purnomo revealed.

He said, the company chooses to focus on digitizing its services to win young, tech-savvy customers.

“We are building five to six mobile apps to cater to various banking services. Two of those digital services have received permit from the OJK,” Purnomo said.

“They are mobile banking and internet banking corporation. We hope to launch these services soon.”

MNC Group acquired MNC Bank in 2014, then named PT Bank ICB Bumiputera TBk (BABP). It operates through 78 branch offices throughout the country.

In 2015, MNC Bank’s total asset was recorded at Rp 12.1 trillion, which was a 28.69 per cent increase from Rp 9.42 trillion in the previous year. Disbursed credit reached Rp 7.1 trillion or grew 13.23 per cent from Rp 6.3 trillion.

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.