JAKARTA (TheInsiderStories) – After delayed for months, Indonesian lender, PT Bank Muamalat Indonesia Tbk resume its rights issue program, said the spokesman on Wednesday (08/14). Previously, the first Islamic bank in the country, aimed to run the program in July 2019.
Corporate Secretary of Bank Muamalat Hayunaji revealed that the time schedule of the program will announce soon after get approval from the Financial Service Agency (FSA). He just inform the rights issue will use the latest financial report.
Initially, Indonesian businessman Ilham Habibie through his company Al Falah Investments Pte. Ltd., will become the controlling shareholder of Bank Muamalat, after finalizing the acquisition of 50.3 percent of the Islamic bank. Beside Al Falah, local cooperative firm PT Kospin Jasa also aims to absorb the new shares issued by the bank.
The son of Indonesia’ third president has injected Rp1.7 trillion while Kospin Jasa injected Rp300 billion of funds, or in total Rp2.0 trillion (US$140.84 million).
CEO of Bank Muamalat Achmad Kusna Permana believed after the capital injection, the lender has capability to expand its businesses.
Al Falah is a company established under Singapore law, owned and established by Habibie (55 percent) and CP5 Hold Co 2 Ltd. (45 percent), an investment company that is indirectly owned 100 percent by SSG Capital Management Ltd., for the purpose of investing in Bank Muamalat.
At present Al Falah’ market capitalization is reaching $121 million while SSG Capital, an asset management company manage asset under management of $5 billion.
Before Al Falah, local securities house, PT Minna Padi Investama Sekuritas Tbk (IDX: PADI) offered to inject capital up to Rp4.5 trillion to the bank. However, the plan was not approved by FSA because the company did not want to disclose the source of funds to be injected into the bank.
After the deal, the bank’ shares owned by Al Falah 50.3 percent and other shareholders, while Islamic Development Bank will out from the bank11.4 percent, Kospin Jasa 8.8 percent, Boubyan Bank 7.7 percent, Regional Holdings Limited 6.2 percent, National Bank of Kuwait 2.9 percent, IDF Invesmnet Fondation 1.2 percent, BMF Holdings Ltd., 1 percent and other minority buyers 10.5 percent.
Bank Muamalat were constrained by non-performing loans problem which had reached 4.95 percent, close to the limit set by the regulator at 5 percent. At that time the regulator sugested the lender find new investor to solve the financial problem.
in the first semester (1H) of 2019, the bank’ net profit fell by 95 percent to Rp5.08 billion, from 1H 2018 worth of Rp103.7 billion. Until June 2019, the total financing of the lender recorded Rp15.70 trillion from last year Rp17.68 trillion.
In the same period, total assets reached Rp54.57 trillion and gross NPF swelled to 5.41 percent from 1.65 percent in June 2018.
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