JAKARTA (TheInsiderStories) – Shareholders of PT Bank Muamalat Indonesia Tbk approved the right issue program Rp2 trillion (US$142.86 million) and subordinate Sukuk Rp6 trillion, said the company on Monday (12/16).
“With the proceeds, our tier-1 and tier-2 capital will rise and we are able to solve bad loans,” The CEO Achmad K. Permana told reporters after the shareholders meeting in Jakarta.
As per June 2019, Bank Muamalat’ capital adequacy ratio (CAR) was 12.01 percent and tier-1 capital was Rp3.55 trillion. The lender planned to release 32.96 billion series B shares with an exercise price Rp115 a share.
Three companies, namely Lynx Asia Partner, Al Falah Investment Pte. Ltd., owned by the chairman Ilham Habibie, and local firm PT Kospin Jasa acted as standby buyer for the rights issue. Lynx Asia, an investment company from Singapore had facilitated foreign investors to the sharia bank.
Rizal Risjad, son of Ibrahim Risjad who is infamous in Soeharto Era with Liem Sioe Liong, Sudwikatmono, and Djuhar Sutanto is the managing director at the company. He is also founder of PT Armadian Tritunggal and co-founder of PT Berau Coal Energy Tbk (IDX: BRAU).
Permana added, Islamic Development Bank (IDB)’ ready that their shares to be diluted. That is due to the internal policy which limits IDB’s ownership in one company.
Meanwhile, Bank Muamalat‘ chairman, Ilham Habibie, asserted Al Falah Investment Pte. Ltd,. will be ready to inject capital to the lender, though Financial Service Authority denied the intention as the lack of fund in an escrow account. They will keep negotiating with the agency and will turn the capital injection in case there will be new investors.
The management said funds from the rights issue will be used to add tier-1 capital. As per June 2019, the company’s capital adequacy ratio was 12.01 percent and tier-1 capital was Rp3.55 trillion.
The lender assured the right issue will not change the ownership structure of the company if all the shareholders joint the program. IDB will still hold 32.74 percent of the bank shares, but the number of shares rises from 14.13 billion from 10.79 billion shares before the rights issue.
Other shareholders, Boubyan Bank will own 9.49 billion shares or equivalent to 22 percent share ownership. Then, Atwill Holding Ltd. will have 7.7 billion shares or 17.91 percent of total shares, National Bank of Kuwait of 8.45 percent with 3.64 billion shares.
In addition, IDF Investment Foundation will hold 1.5 billion shares equivalent to 3.48 percent ownership, BMF Holding Limited valued at 1.22 billion shares at 2.84 percent and public shares rose to 5.42 billion shares or equivalent to 12.58 percent.
The rights issue plan has been delayed three times from the plan. Initially, the schedule for implementing the original rights issue was in mid-July 2019. The plan was withdrawn because there were some administrative requirements that had to be completed first.
As of June 2019, Bank Muamalat recorded CAR of 12.01 percent, decreased from the previous year of 15.92 percent. While the total core capital of Bank Muamalat as of June 2019 was Rp3.55 trillion, down from Rp3.82 trillion a year earlier.
The decline of the sharia bank’ CAR was due to the increasing of non performing financing of 5.41 percent on June 2019. It increased from last June 2018 which was only 1.65 percent.
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