BDNI issues FRNs worth $100 million

JAKARTA (JP): Bank Dagang Nasional Indonesia (BDNI), a publicly-listed private commercial bank, yesterday issued floating rate notes through its Cayman Islands branch to raise a loan of US$100 million.

The bank said in a statement yesterday that the notes, whose issuance was arranged by Merrill Lynch and Hong Kong Shanghai Bank Corporation Market, are listed on the Stock Exchange of Hong Kong Securities Limited and the International Stock Exchange of the United Kingdom and the Republic of Ireland.

The agreement on the notes issuance was signed in Hong Kong yesterday.

The statement said that the notes, issued in the bearer form with a maturity in October 2000, offer quarterly interest payments commencing in January 1996.

The interest rate is determined at 0.85 percent per annum over the three-month London Inter-Bank Offered Rate.

Sjamsul Nursalim, chairman of the Gajah Tunggal Group with which the bank is affiliated, said that the bank will use the loans to finance its overseas operations.

Yesterday's notes issuance was lead-managed jointly by Dai- Ichi Kangyo Bank Asia Limited, Chemical Bank Asia, Standard Chartered Bank, Bank of America, Commercial Bank of Korea, Commerz Bank AG, Daiwa Securities, Gulf International Bank BSC, Mitsubishi Merchant Banking and Banque Paribas Capital Market.

The managers of the deal were Goldman Sachs, Industrial Bank of Korea, Korean Exchange Bank, Kwang Won Bank, Lehman Brothers, LTCB Asia Limited, Northern Landes Bank, Solomon Brothers, Sanwa Bank, Swiss Bank Corporation, Union Bank of Switzerland, Westdeutsche Landes Bank Girozentrale.

BDNI has developed a network of 168 domestic branches and seven overseas branches and subsidiaries. The bank also has established a correspondent network with 550 international banks and maintains active relationships with more than 45 banks worldwide.

As of last December, BDNI recorded total assets of Rp 8.89 trillion ($3.95 billion), up from Rp 6.14 trillion as of December 1993, while its after-tax profit increased to Rp 134.85 billion last year from Rp 61.54 billion in 1993.

BDNI is 51.80 percent owned by PT Daya Patria Corporation, 5.10 percent by PT Nusantara Duta Development Corporation, 3.20 percent by PT Nusantour Duta Djaya Invest Corporation, 1.90 percent by PT Gajah Tunggal Mulia and 38 percent by the investing public.(31)