Bank Artha Graha secures $25m loan<\/p>\n
DENPASAR, Bali (JP): Bank Artha Graha secured a US$25 million
\nsyndicated loan yesterday from 13 local and foreign banks.<\/p>\n
Bank Artha Graha's president, Anton B.S. Hudaya, said the
\nfive-year loan would carry an annual interest rate 1.4 percent
\nabove the Singapore Inter Bank Offered Rate and be used to
\nfinance an expansion program.<\/p>\n
He said the loan's lead arranger was Hong Kong's Asia Capital
\nMarkets, which also provided $2 million of the loan.<\/p>\n
The other 12 banks included Bank Negara Indonesia, American
\nExpress Bank, KMBC Asia Limited, Hong Kong's BRI Finance Limited,
\nBank Pembangunan Indonesia, Korea's Commercial Bank and Ta Chong
\nBank.<\/p>\n
The loans will be provided into two packages. The first will
\nbe $5 million and will mature in three years, while the second
\nwill be $20 million and mature in two years.<\/p>\n
\"This is our first offshore loan and it's expected to increase
\nour overseas exposure and our financing strength,\" Anton said.<\/p>\n
Bank Artha's total assets were worth Rp 1.11 trillion ($468
\nmillion) as of December, 1996, with outstanding credits of Rp 847
\nbillion. Over the same period, the public funds held by the bank
\nwere Rp 909 billion.<\/p>\n
Anton said the bank, which had a capital adequacy ratio of
\nabout 9 percent as of December expected its lending to grow by
\nabout 30 percent this year.<\/p>\n
He said that in 1996 the bank's pretax profit was Rp 10
\nbillion.<\/p>\n
\"This year's net profit is expected to grow by around 30
\npercent,\" he said.<\/p>\n
Anton said that about 60 percent of this year's profit was
\nexpected to come from net interest income and the other 40
\npercent from fee-based income.<\/p>\n
He said the bank planned to launch its initial public offering
\nthis year to raise more funds to finance its expansion.<\/p>\n
He said between 30 percent and 40 percent of the bank's
\nenlarged stock would be sold to the public.<\/p>\n
\"The bank is ready to enter the stock exchange but we have yet
\nto receive the go-ahead from shareholders,\" he said.<\/p>\n
Bank Artha is 40 percent owned by army foundation Yayasan
\nKartika Eka Paksi, 30 percent by PT Cerna Artha Putra and 30
\npercent by PT Kartika Nusantara Permai.<\/p>\n
He said shareholders were expected to increase the bank's
\nequity to Rp 150 billion from Rp 113 billion to support the
\nexpansion. (09)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/bank-artha-graha-secures-25m-loan-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}