Indonesia’s two lenders to raise funds via rights issue, bonds

By Vincencia NLS

April 1, 2016

Two Indonesian medium-sized lenders, Bank Permata and Bank OCBC NISP, are planning to raise funds by way of rights issue and bonds, respectively, in a bid to boost their capital structure and fuel their expansion plans.

Permata Bank said, it hopes to mop up Rp5.5 trillion ($413.53 million) through the rights issue to support its expansion and comply with Basel III regulations.

Permata Bank president director Roy A. Arfandy said, the company’s two major shareholders, Standard Chartered of U.K. and Astra International, would share the commitment to absorb the new shares released through the rights issue.

Standard Chartered and Astra each hold 44.6% stake in Permata Bank while the remaining 10.88% is owned by the public.

Post the rights issue, the bank would be able to maintain its capital adequacy ratio (CAR) at between 17% and 18% this year.

Meanwhile, Bank OCBC NISP is targeting to raise Rp 2 trillion in a bonds issue next month as part of a plan to issue Rp 8 trillion worth of bonds.

“The issuance of continuous bonds is aimed at diversifying funding sources to support Bank OCBC NISP’s sustainable business growth,” Bank OCBC NISP president director Parwati Surjaudaja said.

Bank OCBC NISP has appointed Indo Premier Securities, Mandiri Sekuritas, OCBC Sekuritas Indonesia, RHB Securities and BCA Sekuritas to underwrite the debt paper issuance, triple-A rated by state rating agency Pemeringkat Efek Indonesia (Pefindo).

Also Read : 

Indonesia to require more capital for most important banks

Stanchart, Indosat target unbanked Indonesians with launch of Straight2Bank Wallet

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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.
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