Bank Jabar to Hold Public Offering Next Year
Tuesday, 17 October, 2006 | 15:54 WIB
TEMPO Interactive, Jakarta: PT Bank Pembangunan Daerah of West Java (Bank Jabar) is planning to hold an initial public offering (IPO) next year.
Director of Credit of Bank Jabar Abas S Soemantri said that the target of share sales will be 10 percent. The target of funds that will be obtained is between Rp800 billion to Rp1 trillion. The funds will be allocated for strengthening the capital structure so that basic capital increases to Rp4 trillion.
According to Managing Director of Bank Jabar Umar Sjarifuddin, the plan has been agreed to by share holders. “We'll wait for the appropriate time and condition,” he said.
The company's shareholding structure is as follows: West Java Provincial government with 52.98 percent; Municipality and Regency Governments with 28.58 percent; Banten Regency and Municipality Governments with 9.91 percent; and Banten Provincial government with 8.53 percent.
Bank Jabar will also offer bonds valued at between Rp750 billion and Rp1 trillion with an interest rate of between 11 and 12 percent.
Umar said that obligations of the five Bank Jabar will be offered by the end of November of this year. “The obligations have five year periods,” he said. In addition, funds gained from the results of the obligations will be used for credit disbursement.