BNI plans rights shares

JAKARTA (JP): State-owned, publicly-listed Bank Negara Indonesia plans to issue rights shares in March to improve its capital structure.

BNI president Widigdo Sukarman said the size of the issue was currently being discussed with the Ministry of Finance and the central bank, Bank Indonesia.

The bank currently has a capital adequacy ratio (CAR) of below minus 25 percent, making it ineligible to join the government's recapitalization program. Thus, the rights issue is expected to bring in fresh funds to boost its CAR to at least minus 25 percent. (02)