Bank issues rights shares

Bank issues rights shares

JAKARTA (JP): Bank Bali, a publicly listed private bank, is to
issue 65 million rights shares at Rp 2,000 each, 37 million
detachable warrants with an exercise price of Rp 2,900 and bonds
worth Rp 250 billion, the bank's president said.

Rudy Ramli told an extraordinary meeting of the bank's
shareholders yesterday that the schedule for the offering of the
rights shares and warrants will be set at July 17 to Aug. 23,
while the bonds will be floated in the middle of 1996.

The issuance of rights shares, warrants and bonds is aimed at
strengthening the bank's capital structure and its capability to
provide consumer loans, he said.

However, Rudy said that Bank Bali, which is strong in credit
card, residential mortgage, and home equity financing, will
refrain from providing more loans due to a prudent management
decision.

Bank Indonesia Governor J. Soedradjad Djiwandono has warned
banks to slow down the growth of their lending for the property
business to prevent another economic overheating.

Rudy said yesterday that Bank Bali will distribute final cash
dividends of Rp 125 per share, in addition to its interim
dividends of Rp 100 a share.

He said the bank, which has Hendra Firmansjah and Agam P.
Napitupulu as new directors, recorded a 17.4 percent increase in
its net profit from Rp 64 billion in 1993 to Rp 75 billion in
1994.(kod)