Home News Bank Rakyat Indonesia Issues Rupiah Bond US$354M

Bank Rakyat Indonesia Issues Rupiah Bond US$354M

PT Bank Rakyat Indonesia Tbk (IDX: BBRI) plans to issue local bonds Rp5 trillion (US$354.61 million) in this year, said the corporation in Jakarta, today (10/02) - Photo by the Bank

JAKARTA (TheInsiderStories)PT Bank Rakyat Indonesia Tbk (IDX: BBRI) plans to issue local bonds Rp5 trillion (US$354.61 million) in November, said the corporation in Jakarta, today (10/02). The state-owned lender plans to release sustainable bonds as much as Rp 20 trillion in two years time starting 2019.

Finance director at the bank, Haru Koesmahargyom, disclosed the bonds will be offered in three series. Series A offered with indicative coupon rate of 6.35  – 7.00 percent and have term 370 days. Then, Series B with tenure three years with an indicative coupons of 7.19 – 7.79 percent and Series C with an indicative price of 7.51 – 8.21 percent with a term five years.

Bank Rakyat Indonesia set the book-building period on Oct. 2 – 16 with an effective date its expected on Oct. 29. The public offering starting Nov. 5 – 6 and listring in the Indonesia Stock Exchange on Nov. 8.

While, acting as the joint lead underwriters for the emission are PT BCA securities, PT BNI Sekuritas, PT Danareksa Sekuritas, PT IndoPremier Sekuritas, PT Mandiri Sekuritas, PT Samuel Sekuritas Indonesia, and PT Trimegah Sekuritas Indonesia Tbk (IDX: TRIM).

As reported earlier, the bank need funds Rp1.5 trillion to complete the acquisition of general insurance firm in order to complete the company’ business as a comprehensive financial services provider.

Last year, one of the largest bank in the country has acquired 97.61 percent shares of PT BRI Ventura Investama, 68 percent shares of PT Danareksa Sekuritas, and 35 percent PT Danareksa Investment Management shares.

Previously, the bank has acquired 35 percent of PT Bahana Artha Ventura, which is a subsidiary of PT Bahana Pembangunan Usaha Indonesia (BPUI) with worth of Rp71.21 billion. The transaction eroded BPUI’ ownership from 99.45 percent to 64.65 percent and the shares of the BPUI’ Employee Cooperative from 0.55 percent to 0.35 percent.

Beside, the State Own Enterprises (SOEs) ministry has plan to set up financial services holding led by Danareksa. The holding company was planned to be in charge of four state-owned banks, namely, BBRI, PT Bank Negara Indonesia Tbk (IDX: BBNI), PT Bank Tabungan Negara Tbk (IDX:BBTN), PT Bank Mandiri Tbk (IDX:BMRI), and PT Pegadaian.

Consolidation through the establishment of the holding will basically not eliminate the entity of each bank. The country’s banking regulator and the central bank have both been pushing for banks to merge, to shore up equity. The regulators want to halve the number of banks operating across the archipelago from around 120.

The four banks have, under an Association of State-Owned Banks Association, already merged their ATM networks and set up a single switching company to manage the system.

US$1: Rp14,100

Written by Staff Editor, Email: theinsiderstories@gmail.com