Bank DKI to issue Rp 500 billion in bonds this month
Bank DKI to issue Rp 500 billion in bonds this month
JAKARTA (JP): The Jakarta administration-owned Bank DKI will
issue Rp 500 billion (US$205.5 million) in bonds this month to
expand its lending portfolio.
The bank's president Soeharto said yesterday the bonds would
mature in seven years and carry fixed and floating interest
rates.
"The interest rate will be fixed at between 14.5 and 15.5
percent for the first year," Soeharto said after the bond
issuance presentation.
He said from the second year the interest rate would be
floated between 0.75 and 1 percent above the average deposit
interest rate of five state-owned banks.
The bonds, which would be sold to the public from May 20 to 23
would be listed on the Surabaya Stock Exchange on June 6, he
said.
PT Sucorinvest Central Gani and PT Bhakti Investama will
underwrite the issue, and publicly listed PT Bank Negara
Indonesia will act as trustee.
This is the bank's third bond issue. In 1989 the bank issued
Rp 25 billion in bonds, which matured last year. Its second bond
issue of Rp 75 billion publicly offered in 1993 will mature next
February.
Soeharto said 60 percent of the bonds' proceeds would be used
to finance toll road projects in Jakarta.
These include the Kali Malang-Bekasi toll road, the Kebon
Jeruk-Cengkareng road, the Cilincing-Cikunir road, and the
western link ring road, he said.
He said Bank DKI was a member of the syndicate of banks
financing the toll road projects.
The remaining 40 percent of the proceeds would be used to fund
other city projects, such as traditional market renovations and
apartment developments.
The proceeds would also be used to finance housing credits for
city officials, he said.
He said the bank might join another bank syndicate to finance
the subway and three-tiered transit system projects in the city.
Bank DKI booked Rp 42.9 billion in net operating profit last
year, a 3.9 percent drop from Rp 44.6 billion in 1995.
Total revenue was Rp 342 billion last year, up from Rp 215
billion in 1995.
The bank's assets rose by 5.5 to 2.42 trillion last year, and
public funds made up Rp 1.14 trillion of the amount.
The bank's Capital Adequacy Ratio grew from 26 percent in 1995
to 34 percent last year.
Soeharto said the central bank, Bank Indonesia, had approved
the expansion of its credit by 50 percent this year from about Rp
1.4 trillion last year.
The central bank limited the overall lending growth in bank
lending to between 17 and 18 percent this fiscal year. (das)