JAKARTA (TheInsiderStories) – State-owned lender, PT Bank Rakyat Indonesia Tbk (IDX: BBRI) plans to release sustainable bonds as much as Rp 20 trillion (US$1.38 billion) starting this year, said the chief executive on Thursday (01/03). Besides, the bank prepared funds Rp1.5 trillion to acquire general insurance firm.
According to the CEO Suprajarto, BBRI targets to releasing these bonds since the first semester of 2019. Finance Director Haru Koesmahargyo, added that the first issuance worth of Rp7-8 trillion and Rp6 trillion in 2020 and 2021.
Furthermore, the chief executive revealed the acquisition of general insurance companies in order to complete the company’s business as a comprehensive financial services provider. He targets, the planned could be carried out by the company in the first semester of 2019.
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.
The State Owned 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.