BII to issue bonds

BII to issue bonds

JAKARTA (JP): Bank Internasional Indonesia, a private commercial bank listed on the Jakarta Stock Exchange since 1989, announced yesterday that it will issue bonds worth Rp 388 billion (US$174 million) to finance housing loans.

The bank's president, Indra Widjaja, said that the bonds will have a maturity of five years and carry coupons with a fixed interest rate of between 18 percent and 18.5 percent per annum for the first year and, subsequently, a floating rate of 1.75 percent above the average rate offered by three state banks and three major private banks on their six-month deposits.

The interest will be paid quarterly, he said.

The bonds, which will be offered to the public between June 5 and June 7, will be listed on the parallel capital market in Jakarta on June 23.

Indra said PT Niaga Securities and PT Bhakti Investama will act as underwriters for the bond issuance.

He said that BII's profit increased to Rp 141.9 billion last year, from Rp 112.43 billion in 1993, while its assets had risen to Rp 9.32 trillion, as of last December, from Rp 7.13 trillion at the end of 1993. (32)