BII raises Rp 4.46t from rights issue<\/p>\n
JAKARTA (JP): Publicly listed Bank Internasional Indonesia
\n(BII) said on Friday it raised Rp 4.46 trillion (about US$656
\nmillion) from its April rights issue.<\/p>\n
The bank said the funds generated from the rights issue
\naccounted for 40.3 percent of the total recapitalization
\nrequirement.<\/p>\n
\"About Rp 3.04 trillion of the funds were injected by the
\nSinar Mas Group and the Widjaya family, the majority
\nshareholders, while another Rp 1.42 trillion came from the
\ninvesting public,\" the bank said.<\/p>\n
The higher than expected proceeds from the rights issue cut
\nthe government's contribution to the bank recapitalization
\nprogram to 59.8 percent, from an initial estimate of 70 percent.<\/p>\n
The government's stake in the bank therefore is only 59.8
\npercent, equal to the portion of its contribution in the bank's
\nrecapitalization program.<\/p>\n
The bank issued in April rights shares worth Rp 11.14 trillion
\nto increase its capital adequacy ratio to 4 percent. The bank
\ninitially expected its shareholders to contribute Rp 3.35
\ntrillion and the government the remainder.<\/p>\n
BII also said its management was negotiating with potential
\ninvestors who have shown interest in acquiring the government's
\nstake.<\/p>\n
\"By the end of 1999, the management believe, and are
\nconfident, that the government capital investment will be fully
\nremoved,\" the statement said.<\/p>\n
BII is one of eight banks which qualified for the government-
\nsponsored recapitalization program. Under the program, the banks'
\nshareholders must provide at least 20 percent of the needed
\nrecapitalization funds. The government will provide the other 80
\npercent through the issuance of bonds.<\/p>\n
The other banks in the program are Bank Lippo, Bank Bali, Bank
\nBukopin, Bank Universal, Bank Prima Express, Bank Arta Media and
\nBank Patriot.(udi)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/bii-raises-rp-446t-from-rights-issue-1447893297",
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