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)