BRI receives $480m subscriptions<\/p>\n
JAKARTA: Bank Rakyat Indonesia on Thursday priced its US$150
\nmillion international subordinated bond at a yield-to-maturity of
\n7.78 percent, a source close to the deal said.<\/p>\n
The source told Dow Jones Newswires that the state-owned bank
\nreceived a total of $480 million in subscriptions for the bond.<\/p>\n
UBS AG is the lead underwriter.<\/p>\n
Moody's Investors Service has assigned a B3 rating to the
\nbond, reflecting the "subordinated status of the notes, strong
\ngovernment support for the bank, as well as BRI's unique and
\nprofitable franchise."<\/p>\n
The subordinated bond is callable in 2008 before its tenor
\nends in 2013.<\/p>\n
The bank, which has the most extensive network of bank
\nbranches in Indonesia, will use the proceeds to expand its
\ncapital base.<\/p>\n
Besides the dollar-denominated bond, BRI is also preparing to
\nissue Rp 1 trillion ($117 million) in bonds. That is expected
\nafter the bank has completed an initial public offering of shares
\nslated for October.<\/p>\n
The government plans to sell 30 percent of its 100 percent
\nownership in BRI to raise Rp 2.6 trillion to reduce the state
\nbudget deficit this year. -- Dow Jones<\/p>",
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