Bank Mashill to issue bonds locally

Bank Mashill to issue bonds locally

JAKARTA (JP): Bank Mashill, a foreign exchange bank listed on the Jakarta Stock Exchange, announced its plans yesterday to issue bonds worth Rp 75 billion (US$33.6 million) on the local stock exchange.

The bank's president, Agustinus Tjiptoutojo Windoe, said that around 90 percent of the proceeds from the issuance of the five- year debt instruments would be used to expand the bank's working capital and another 10 percent would go to expand their investment loan portfolio.

He said that the bonds will be sold at par and carry a fixed interest rate for the first year, and floating rates from the second through the fifth year.

Agustinus said that the interest rates of the bonds, which will be offered to the public during the second week of July, have not been fixed.

"We are sure the incentives, both fixed and floating rates, will be attractive enough to the investing public," he said of the prospect of the bonds, which will be listed on Bursa Paralel Indonesia, the over-the-counter market.

He said that the debt instruments would be secured by the bank's fixed assets and outstanding loan receivables.

Acting as the lead underwriter of the bonds is PT Inter- Pacific Securities. The state-owned Bank Rakyat Indonesia (BRI) has been appointed as the guarantor and Prasetio, Utomo and Co. as the auditor.

Bank Mashill, established in October 1989, is 26.47 percent owned by the public. It booked a net profit of Rp 16.56 billion last year, as compared to Rp 4.68 billion in 1993 and Rp 2.03 billion in 1992.

The bank's assets significantly increased to Rp 821.9 billion last year from Rp 405.21 billion in 1993, while its lending portfolio also sharply rose to Rp 550.3 billion from Rp 283.18 billion.(hen)