JP\/13\/Bumi<\/p>\n
Bumi Putera to launch asset-backed securities<\/p>\n
The Jakarta Post
\nJakarta<\/p>\n
Bank Bumi Putera plans to issue asset-backed securities worth Rp
\n1 trillion (US$117.65 million) sometime this year in a bid to
\nraise cash to boost its lending, according to the bank's
\npresident.<\/p>\n
Bumi Putera president Winny E. Hassan said on Friday that the
\ndebt instrument would be backed up with the bank's car and
\nautomotive loan assets as collateral.<\/p>\n
\"If approved, Bank Bumi Putera will be the first bank in the
\ncountry to launch asset backed securities,\" Winny said following
\nits annual shareholders meeting as quoted by detik.com.<\/p>\n
She explained that the bank was currently in the process of
\nappointing an investment manager for the issue. The securities
\nwill be listed on the Surabaya Stock Exchange.<\/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 which takes title to the assets and 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
This is a relatively new type of debt instrument in the
\ncountry.<\/p>\n
Elsewhere, Winny said that the bank's lending business in the
\nfuture would focus on consumer and retail loans.<\/p>\n
She also said that prior to launching asset-backed securities,
\nthe bank would issue a sub-ordinated bond worth around Rp 200
\nbillion in a bid to raise cash to increase the bank's capital
\nadequacy ratio to 12 percent from the current 9 percent.<\/p>\n
The debt instrument will be issued in June of this year.<\/p>\n
Winny said that for this year, the bank was targeting a 30
\npercent to 35 percent increase in lending to Rp 3 trillion, which
\nis lower than last year's lending growth of 40 percent.<\/p>\n
Last year, the bank's net interest income was Rp 151.98
\nbillion, a jump from the previous year's 86.57 billion. Net
\nprofit reached Rp 12.73 billion, of which 45 percent would be
\ndistributed as dividends, or Rp 6 per share.<\/p>\n
Bank Bumi Putera is in the process of divesting around 58.41
\npercent shares. Three investors have expressed interest in the
\nstake including the AJB Bumi Putera consortium, Bank Panin
\nconsortium, and a Malaysian consortium called International
\nCommercial Bank (ICB).<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/jp13bumi-1447899208",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}