Indonesia Dealbook: IFC eyes Bank Muamalat stake; Bank Negara plans $287m NCD

Photo by Bank Muamalat

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.

Also Read : Indonesia property developer Ciputra plans to raise $358m via REIT, secures $30m debt from IFC

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Singapore Reporter/s

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

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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.