Bumiputera to complete stake sale next month<\/p>\n
Urip Hudiono, The Jakarta Post, Jakarta<\/p>\n
The sale of a majority 58.41 percent stake in Bank Bumiputera
\nis expected to be completed in May, according to a senior officer
\nof the mid-sized bank.<\/p>\n
\"According to the divestment plan schedule, our new investor
\nwill hopefully be determined in May,\" marketing director Toto
\nMoeljono said on Tuesday on the sidelines of a launching ceremony
\nfor the company's latest customer appreciation program.<\/p>\n
Toto explained that there were three investors interested in
\nacquiring the bank. They include Bank Panin, insurance company
\nAJB Bumiputera 1912 and Malaysian financial holding group
\nInternational Commercial Bank (ICB).<\/p>\n
The majority stake on offer consists of shares owned by three
\nsubsidiary companies of state-owned investment firm PT Danareksa:
\nPT Reksasentosa Dinamika, PT Reksatama Dinamika and PT Cipta
\nUsaha Citra Dana.<\/p>\n
Toto further said that Bank Bumiputera would also press ahead
\nwith its two principal strategic plans for this year: the issuing
\nof asset-backed securities worth Rp 1 trillion (US$117.65
\nmillion) and of subordinated bonds worth Rp 200 billion.<\/p>\n
The asset-backed securities, he explained, were expected to
\nraise cash to support the bank's lending operations, while
\nproceeds from the bonds would increase the bank's capital
\nadequacy ratio to 12 percent from the current 9 percent.<\/p>\n
\"The plans will hopefully start to be rolled out in June as
\nscheduled,\" he said.<\/p>\n
Toto, however, said that even though the plans had been
\napproved by the bank's shareholders meeting earlier this year,
\nthe bank would still have to heed the views of its new majority
\ninvestor.<\/p>\n
\"If our new investor requests another meeting to discuss and
\napprove the plans once again, then we will hold such a meeting,\"
\nhe said.<\/p>\n
Asset-backed securities are bonds that are based on an
\nunderlying pool of assets. A special purpose trust or instrument
\nis set up and takes title to the assets, while cash flows are
\npassed through to investors. The type of assets that can be used
\nunder such schemes range from residential mortgages to credit
\ncard receivables.<\/p>\n
It is a relatively new kind of debt instrument in Indonesia.
\nIn fact, Bank Bumiputera will be the first bank to launch such
\nsecurities here.<\/p>",
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