Bank NISP to double bond issue

Sat, 22 Feb 2003 | Source: AGENCIES

JAKARTA: PT Bank NISP said on Friday that it will double the size of a planned subordinated bond issue to around Rp 500 billion (US$56 million) due to good response from prospective buyers.

The 10-year NISP bonds will be divided into a Rp 455 billion tranche and a $5 million tranche. The bank closed the preliminary marketing of the bond Monday, and said that demand was overwhelming.

The rupiah-denominated bonds will carry a 17.125 percent annual coupon, while the dollar tranche will have a 10.25percent coupon rate. The issue has been rated B- by Fitch Ratings.

NISP, which has appointed PT Andalan Artha Advisindo Sekuritas to underwrite the bonds, will use the proceeds to strengthen its capital base. NISP reported an unaudited pretax profit of Rp 135.72 billion in 2002, up from Rp 94.76 billion in 2001. -- Dow Jones

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