In developments related to Indonesia banking sector, IFC is said to be eyeing a stake in the country’s first Islamic lender PT Bank Muamalat Indonesia. State-owned PT Bank Negara Indonesia Tbk (BBNI) plans to issue negotiable certificate of deposit (NCD) of Rp4 trillion ($287.77 million) in 2016.
Bank Muamalat may see IFC come in as investor
Bank Muamalat will soon hold a rights offering and could see the World Bank’s private lending arm IFC coming in as an investor, the Jakarta Globe reported, citing Mulya Siregar, deputy commissioner in charge of monitoring banks at the Financial Services Authority (OJK).
IFC currently has shares in four local lenders, including a 20 per cent stake in PT Bank Mayora Tbk (MYOR), as well as minority stakes in PT Bank Andara, PT Bank KEB Hana and PT Bank Tabungan Pensiunan Nasional Tbk (BTPN).
Bank Muamalat is also looking at raising additional capital through the rights offering from its controlling stakeholder, Islamic Development Bank, the report said.
As of September last year, Bank Muamalat booked approximately Rp3.55 trillion in core capital with a capital adequacy ratio of 13.67 percent. The Islamic lender’s gross non-performing financing ratio stood at 4.64 percent by the third quarter of last year, while net non-performing financing ration stood at 3.49 percent.
Bank Negara to raise $287m via NCDs
State-owned PT Bank Negara Indonesia Tbk (BBNI) plans to issue negotiable certificate of deposit (NCD) of Rp4 trillion ($287.77 million) in 2016.
Financial Director of BBNI Rico Rizal Budimarmo said, the NCD issuance was to diversify the maturity of funding.
The issuance of non-conventional funding is to replace the global bond of US$500 million maturing in 2017.
NCD issuance in rupiah is one of the options for non-conventional financing with a medium term tenor.
“In addition to NCD in rupiah, as an alternative to non-conventional funding, there is an option bond issuance,” said Rico.
He added, BBNI will use part of the funds to expand its overseas business in Singapore, Hong Kong, London, Tokyo and New York.