Bank NISP plans bond issue to boost lending<\/p>\n
JAKARTA (JP): Publicly listed Bank NISP will soon issue bonds
\nworth Rp 500 billion (US$6.6 million) to boost its lending
\noperation.<\/p>\n
The bank's president, Pramukti Surjaudaja, said on Monday that
\nfive-year bonds would be offered to the public between Sept. 17
\nand Sept. 29.<\/p>\n
The bonds, which would be listed on the Surabaya Stock
\nExchange on Oct. 15, would carry fixed and floating interest
\nrates.<\/p>\n
The fixed rate would be about 1.5 percent to 2.5 percent above
\nthe three-month Bank Indonesia promissory notes (SBIs) interest
\nrate, he said, adding that the bank would use the SBI rate at the
\ncentral bank's weekly auction on Sept. 1 as the basis to set the
\nbond yield rates.<\/p>\n
The three-month SBI rate is at 13.12 percent.<\/p>\n
He said that about 80 percent of proceeds from the bonds would
\nboost working capital loans, while the remaining 20 percent would
\nincrease investment loans.<\/p>\n
State-owned securities company PT Danareksa Sekuritas and
\nSucorinvest Central Gani will be the lead underwriters.<\/p>\n
Bank NISP said that its pretax profit dropped slightly to Rp
\n17.88 billion in the first semester ended June 30 from Rp 18.79
\nbillion in the previous period.<\/p>\n
But the bank's net profit showed an increase of about 25
\npercent to Rp 14.40 billion in the January-June period from Rp
\n11.54 billion in the first semester last year, partly due to a
\nsharp drop in income tax allocation.<\/p>\n
The bank's interest income surged 28 percent to Rp 321.56
\nbillion in the first semester from Rp 250.71 in the same period
\nlast year. The net interest income, however, rose slightly to Rp
\n57.92 billion in the first semester from Rp 57.34 billion, partly
\ndue to a surge in interest spending from Rp 197.38 billion to Rp
\n265.69 billion.<\/p>\n
The bank's capital adequacy ratio (CAR) was at 21.09 percent
\nas of June, up from 13.72 percent in the same month last year.
\nThe bank's CAR was far above the government's requirement of 4
\npercent.<\/p>\n
Meanwhile, Thomson Financial BankWatch on Monday assigned a
\nsenior local currency debt rating of LC-BBB to Bank NISP, and has
\naffirmed its short-term debt rating of LC-3.<\/p>\n
The ratings agency said the bank's conservative strategies in
\nthe pre-crisis period and its pro-active management and defensive
\nstance during the crisis have served it well.<\/p>\n
\"The bank is positioned to play an important role among the
\nfew remaining private banks as the economy begins to pick up,\"
\nMark Jones, vice president at Thomson BankWatch was quoted by Dow
\nJones Newswires as saying.<\/p>\n
The ratings agency cited a number of positive factors,
\nincluding NISP's solid capital base, boosted in fiscal year 1998,
\nand steady growth in the deposit base through the first half of
\nthe year. (hen)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/bank-nisp-plans-bond-issue-to-boost-lending-1447893297",
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