BII issues rights shares

JAKARTA (JP): Publicly listed Bank Internasional Indonesia has gained approval from its shareholders to issue up to 62.1 million rights shares to raise funds for financing its recapitalization program.

The bank announced on Wednesday it expected to raise about Rp 7.76 trillion (about US$914 million) from the sale of the series B shares, to be priced at Rp 125 apiece.

"Existing shareholders are entitled to buy 16 series B shares for each series A share (old shares) they hold. They are also entitled to two free warrants for each old share," the bank said.

BII is one of nine banks which will join the government- sponsored recapitalization program. Participating banks are required to provide at least 20 percent of the funding needed, with the government to finance the remainder through the issuance of bonds.

The bank said it would also issue series C shares to convert the government's bonds, and existing shareholders would also have the option to buy the stocks. (hen)