Bank Jabar begins Rp 1t bond issue

The Jakarta Post, Jakarta

Bank Jabar kicked off on Thursday the book-building process for its two tranche Rp 1 trillion (US$107.75 million) bond issue.

Bank Jabar president director Umar Sjarifuddin indicated the coupon for the A series bond would be between 11.75 percent and 12.25 percent, while the B series would be between 12.25 percent and 12.75 percent.

"The A series bond will have a maturity period of three years, while the B series will run for five years," Umar said.

He said the proceeds from the bond issue would be used to expand new loans. The bank, he added, had channeled loans totaling Rp 7.8 trillion during the first semester of this year.

Umar said the management of the bank had appointed PT Bahana Securities, PT Mandiri Sekuritas and PT Andalan Artha Advisindo Securities to act as the underwriters for the bond issue.

He said the book-building process would run until Sept. 8, and would be followed by an offering period from Sept. 22 to Sept. 24.

The Bandung-based bank is 57.1 percent owned by the West Java provincial administration, 26.6 percent by municipalities and regencies in West Java, 9.7 percent by municipalities and regencies of Banten, and the rest by the Banten administration.

The bank, which was established in 1961, booked a net profit of Rp 149 billion during the first half of the year after recording a Rp 176 billion net profit for the whole of 2003.