Bank Jabar begins Rp 1t bond issue

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.