Danamon to issue subdebt<\/p>\n
PT Bank Danamon Indonesia, the country's fifth-largest bank in
\nasset terms, plans to issue Rp 500 billion (US$56.8 million) to
\nRp 1 trillion of subordinated bonds this year, its director,
\nRiswinandi, told Dow Jones Wednesday.<\/p>\n
"The issuance of the sub-debt is aimed at strengthening the
\nbank's working capital and to increase its capital adequacy
\nratio," said Riswinandi. As of Dec 31, 2002, the bank's capital
\nadequacy ratio was at 25.3 percent.<\/p>\n
Riswinandi, who goes by one name like most Indonesians, didn't
\nprovide further details.<\/p>\n
The government owns a 99.36 percent stake in Bank Danamon,
\nwhich was formed after a merger of several local banks in the
\nwake of the 1997-98 Asian financial crisis. It plans to divest
\nmost of its stake in the first quarter of this year.<\/p>\n
The government is hoping to sell a 20 percent stake via a
\npublic offering and a 51 percent stake to a strategic
\nshareholder, which will also have management control of the bank.<\/p>\n
To attract investors, Bank Danamon's management recently
\nboosted the share price of the bank by combining five existing
\nshares to one new share. -- Dow Jones<\/p>",
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"sponsor": "Okusi Associates",
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