Wed, 09 Mar 2005

From:

Mega plans Rp 600B sub-debt issuance

JAKARTA: Indonesia's Bank Mega plans a domestic rupiah sub-debt issuance of up to Rp 600 billion (US$64 million) by June, a senior bank executive said on Tuesday.

The bank will use the proceeds from the planned sub-debt issuance to expand business operations, Bank Mega's president Yungki Setyawan told reporters.

"We are planning to increase our lending from Rp 7.5 trillion to Rp 11.5 trillion this year...(so) we need funds to maintain our capital (adequacy ratio) at the 14 percent level," Yungki told reporters.

Bank Mega's plans reflect an ongoing boom in debt issuances by domestic banks and finance companies to expand lending amid a brighter domestic economic outlook. -- Dow Jones