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).
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