BII raises Rp 4.46t from rights issue

BII raises Rp 4.46t from rights issue

JAKARTA (JP): Publicly listed Bank Internasional Indonesia
(BII) said on Friday it raised Rp 4.46 trillion (about US$656
million) from its April rights issue.

The bank said the funds generated from the rights issue
accounted for 40.3 percent of the total recapitalization
requirement.

"About Rp 3.04 trillion of the funds were injected by the
Sinar Mas Group and the Widjaya family, the majority
shareholders, while another Rp 1.42 trillion came from the
investing public," the bank said.

The higher than expected proceeds from the rights issue cut
the government's contribution to the bank recapitalization
program to 59.8 percent, from an initial estimate of 70 percent.

The government's stake in the bank therefore is only 59.8
percent, equal to the portion of its contribution in the bank's
recapitalization program.

The bank issued in April rights shares worth Rp 11.14 trillion
to increase its capital adequacy ratio to 4 percent. The bank
initially expected its shareholders to contribute Rp 3.35
trillion and the government the remainder.

BII also said its management was negotiating with potential
investors who have shown interest in acquiring the government's
stake.

"By the end of 1999, the management believe, and are
confident, that the government capital investment will be fully
removed," the statement said.

BII is one of eight banks which qualified for the government-
sponsored recapitalization program. Under the program, the banks'
shareholders must provide at least 20 percent of the needed
recapitalization funds. The government will provide the other 80
percent through the issuance of bonds.

The other banks in the program are Bank Lippo, Bank Bali, Bank
Bukopin, Bank Universal, Bank Prima Express, Bank Arta Media and
Bank Patriot.(udi)