JAKARTA (TheInsiderStories)–PT Bank Mayapada International Tbk (MAYA) plans to raise a fund of Rp4 trillion (US$281.543 million) to Rp5 trillion (US$351.929 million) by issuing subordinate bonds and new shares.
The company targets Rp2 trillion (US$140.732 million) from a rights issue and another Rp2-Rp3 trillion by issuing subordinate bonds. President Director of Bank Mayapada Haryono Tjahjarijadi last week said the plans are still waiting for the audit of the financial statement of March 2018.
The funds aimed to strengthen capital adequacy ratio (CAR) with a target of 18 per cent to 19 per cent by the end of this year.
The major shareholders PMCB-Cathay Life Insurance Co Ltd will execute its rights issue to avoid dilution of their existing share’s value. Cathay Financial Holding Co Ltd plans to invest US$57.27 million at Bank Mayapada. This investment is in line with the Cathay’s commitment to take a 40 per cent stake in the right issue.
Bank Mayapada targets a loan growth of 17 per cent to 18 per cent in 2018 driven by working capital loan, especially from trading and industry. The company targets 20 per cent (year on year) credit growth in the second quarter of this year.
Last year, the company booked 19.6 per cent in loan growth at Rp56.4 trillion (US$3.97 billion). Bank Mayapada recorded Rp675 billion (US$47.524 million) in net profit in 2017, a 17.7 per cent down compared to 2016 as operational cost rose 23 per cent to Rp1.7 trillion (US$119.685 million). Meanwhile, the net interest income only grew 7.5 per cent (year on year). The company’s NPL in 2017 reached 5.65 per cent or up by 354 bps (year on year).
The company recorded Rp74.7 trillion in assets by the end of 2017 or up 23 per cent (year on year).