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)