Bank Mashil rights issue to raise up to $32 million

JAKARTA (JP): Publicly listed Bank Mashil expects to raise about Rp 76.16 billion (US$32 million) in a rights issue later this month.

The bank's president, Agustinus T. Windoe, said yesterday the issue would increase the company's paid-up capital from Rp 108.8 billion to Rp 184.96 billion.

With the rights issue, the company's capital adequacy ratio will increase from Rp 10.3 percent to 12.5 percent.

He said the issue would entitle existing shareholders to subscribe seven new shares with a nominal value of Rp 1,000 for each 10 old shares.

"The rights shares will be listed on Jakarta and Surabaya Stock Exchanges on April 14," Windoe said.

Financial director Muliadi Hendri said the company's net profit for 1996 was Rp 25 billion, better than the Rp 22.6 billion expected.

In 1995, the bank posted a Rp 16.89 billion net profit.

The bank projects a 20 percent net profit rise for 1997.

In 1995, the bank's fee-based income contributed 14 percent of its net profit and this rose to 20 percent in 1996, he said.

"In 1997, fee-based income is expected to contribute around 20 percent of net income," he said.

Muliadi said the bank expected to lend Rp 1.6 trillion in 1997, of which 86 percent would go to the commercial sector and the remaining 14 percent to the retail market.

The bank's extraordinary meeting also approved a proposal to cut the shares' nominal value from Rp 1000 to Rp 500. The split will automatically double the number of the shares but halve the share price.

"The aim of the split is to increase the liquidity of the bank's stock," Windoe said. (09)