BNI bond coupon at 12.75%-13.50%

BNI bond coupon at 12.75%-13.50%

JAKARTA: PT Bank Negara Indonesia (BNI) will set the coupon
for its proposed Rp 1 trillion (US$117 million) eight-year bond
between 12.75 percent and 13.50 percent, a banker with one of the
bond underwriters said Tuesday.

Akhabani, a director with PT Trimegah Securities, said BNI
will set the coupon for its separate $50 million subordinated
debt between 7.875 percent and 8.375 percent. The bond will have
10-year maturity, callable in five years.

BNI is expected to decide the coupon for the two bonds after
it closes the bookbuilding on May 28.

Akhabani said investors, mainly pension funds, mutual funds,
banks, and insurance companies have shown strong interest in the
paper.

"I think the good demand for the bonds is because BNI is a
good bank, and the amount is enough to ensure the liquidity of
the bonds in the secondary market," he said.

Local rating company Pefindo has assigned its A minus rating
to the rupiah-denominated bond, and BBB plus to the dollar-
denominated bond, he added.

BNI will use the proceeds from the issuance to boost its new
lending and improve its capital base. -- Dow Jones