BNI plans to double dollar bonds issue<\/p>\n
Rendi A. Witular, The Jakarta Post, Jakarta<\/p>\n
State-owned Bank Negara Indonesia (BNI), the country's second
\nlargest bank in terms of assets, plans to double the size of its
\nU.S. dollar-denominated bond offering amid strong demand from
\ninvestors, according to one key official.<\/p>\n
Managing director of PT BNI Securities Noor Hassim told The
\nJakarta Post on Wednesday the publicly listed bank was now
\nplanning to issue up to US$100 million, compared to an earlier
\nplan of $50 million.<\/p>\n
But he said that the new plan had yet to receive approval from
\nBank Indonesia.<\/p>\n
In addition to the dollar-denominated bonds, BNI is also
\nplanning to issue rupiah bonds worth Rp 1 trillion ($117 million)
\nnext month.<\/p>\n
Proceeds from the bonds will be used to improve the bank's
\ncapital base and boost its lending capacity.<\/p>\n
BNI Securities is one of the underwriters of the bond
\nofferings, to be made from June 16 to June 18. The bonds will be
\nlisted on the Surabaya Stock Exchange on June 27.<\/p>\n
During a feasibility study that started on May 13 and to be
\nended on May 28, it was found that the planned bond issue would
\nbe 1.5 times oversubscribed, Noor said.<\/p>\n
BNI said the indicative fixed rate of the rupiah bonds would
\nbe in the range of 12.75 percent to 13.50 percent with a maturity
\nperiod of eight years, while the coupon range for the dollar
\nbonds would be between 7.87 percent and 8.37 percent with a
\nmaturity period of 10 years.<\/p>\n
The rupiah bonds have received an A- rating from local rating
\nagency PT Pefindo, while the U.S. dollar bonds received a BBB+
\nrating, both considered \"stable\".<\/p>\n
Meanwhile, BNI president Saefuddin Hasan said that the
\nmanagement would propose an asset revaluation measure at the
\nupcoming shareholders meeting on June 19 as part of efforts to
\nresolve several financial issues dating back to the beginning of
\nthe economic crisis.<\/p>\n
He declined to provide further details of the plan.<\/p>\n
Despite problems with non-performing loans dating back to
\n1997, BNI, however, had decided to allocate some Rp 1.25 trillion
\nor half of its 2002 net profit as dividend payments -- the first
\nsince 1997.<\/p>",
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