Bank Bali to issue warrants

Bank Bali to issue warrants

JAKARTA (JP): The publicly listed Bank Bali plans to issue
warrants as the "sweetener" for its rights shares soon to be
offered to existing shareholders, a bank executive says.

Muliadi Hendri, the vice president of Bank Bali, said the
planned rights shares and warrants would be issued to strengthen
the bank's capital structure.

"The issuance of the rights shares is theoretically designed
to meet the present need for capital and the warrants are to meet
future capital needs," he told journalists on Thursday night.

Dian Wirjawan, an executive of PT Kapita Sekurindo, a company
which will manage and underwrite the issuance of the rights
shares and warrants, said that the prices of rights shares and
warrants were being formulated.

The issuance of the warrants, which will become the first
warrant instrument to be listed on the Indonesian capital market,
has not yet been registered with the Capital Market Supervisory
Agency (Bapepam), he said.

"We hope there will be no obstacles impeding the issuance of
the warrants," responded Dian, when he was asked if Bapepam had
approved the bank's warrant offering.

PT Modernland Realty, a real estate developer listed on the
Jakarta and Surabaya stock exchanges, planned late last year to
issue detachable warrants to sweeten its mandatory convertible
bonds.

The plan to issue warrants was, however, canceled due to the
lack of support from Bapepam, which considered the issuance to be
too speculative for the investing public. (hen)