BRI to inject Rp 428b into Bank Inter-Pacific<\/p>\n
JAKARTA (JP): Shareholders of publicly listed Bank Inter-
\nPacific approved on Monday the management's proposal to issue
\nrights shares to strengthen the bank's capital structure.<\/p>\n
The bank said it would sell 9.62 billion new shares through a
\nrights issue which would raise Rp 962.5 billion.<\/p>\n
The shares, each with a par value of Rp 15, will be sold to
\nexisting shareholders at Rp 100 each.<\/p>\n
The bank said shareholders would be entitled to buy 154 rights
\nshares for every old share they held at the 154-for-one rights
\nissue.<\/p>\n
State Bank Rakyat Indonesia (BRI), the bank's majority owner,
\nwill inject at least Rp 428 billion in fresh funds into Inter-
\nPacific Bank through the rights issue.<\/p>\n
The share purchases of BRI, which will act as a standby buyer
\nin the rights issue, could exceed the Rp 428 billion target if
\nother existing shareholders did not exercise all their rights.<\/p>\n
\"BRI will act as the standby buyer for any shares not bought
\nby other shareholders,\" an executive if Bank Inter-Pacific said.<\/p>\n
Banking analysts are concerned about Inter-Pacific Bank's
\nrights issue plan. They question the capability of the troubled
\nBRI to raise the funds needed to purchase Bank Inter-Pacific's
\nrights shares.<\/p>\n
BRI itself needs about Rp 31.6 trillion in government funding
\nfor its recapitalization program to improve its negative balance
\nsheets.<\/p>\n
\"Inter-Pacific Bank's loan portfolio is so bad that injecting
\nmore fresh funds into the bank through a rights issue will not
\nhelp much,\" an analyst said on the condition of anonymity.<\/p>\n
The bank suffered a net loss of Rp 76.8 billion as of June,
\ncompared to a net loss of Rp 66.5 billion in the corresponding
\nperiod last year.<\/p>\n
Its total assets, as of June, decreased significantly to Rp
\n547.1 billion from Rp 2.5 trillion in the same period the
\nprevious year.<\/p>\n
Its net equity deteriorated as well to minus Rp 826 billion,
\nas compared to positive Rp 37.4 billion last year.<\/p>\n
The bank's shareholders are BRI 44.5 percent, Sanwa Bank Ltd.
\nof Japan 25 percent, Credit Commercial De France 15.04 percent
\nand the investing public 15.46 percent.<\/p>\n
Bank Inter-Pacific is listed on the Jakarta and Surabaya stock
\nexchanges. (udi)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/bri-to-inject-rp-428b-into-bank-inter-pacific-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}