BRI kicks off bond roadshow

BRI kicks off bond roadshow

JAKARTA: PT Bank Rakyat Indonesia (BRI) on Tuesday kicked off the roadshow for its US$100 million to $150 million subordinated debt in Jakarta.

An official with the state-owned bank told Dow Jones Newswires that the marketing presentation to prospective buyers is expected to move to Singapore on Monday, followed by Hong Kong and London.

"We hope we'll be in London on Sept. 18 or Sept. 19," the official said.

He declined to give further details of the bond, although he said he expected the bank would be able to sell the bond at a yield below 8 percent.

BRI, which has the largest number of branches of all commercial banks in Indonesia, is issuing the subordinated debt to expand its capital base.

Besides the dollar-denominated bond, BRI is also preparing to issue a Rp 1 trillion rupiah ($118 million) bond, expected after the bank completes its initial public offering slated for October.

BRI has named UBS Warburg as the lead underwriter of the proposed dollar bond. UBS Warburg is also one of the two joint lead underwriters for BRI's IPO. -Dow Jones

The government plans to sell 30 percent of its 100 percent ownership in BRI to raise Rp 2.6 trillion to reduce the state budget deficit this year. -Dow Jones