BRI plans 30% stake offering in 3Q

BRI plans 30% stake offering in 3Q

JAKARTA : State-owned PT Bank Rakyat Indonesia, or BRI, plans to
sell a 30 percent stake via an initial public offering in the
third quarter of the year, a bank executive said Monday.

BRI's president director Rudjito told Dow Jones Newswires that
some of the proceeds from the IPO will go to the state coffers
and it will use the remaining proceeds to strengthen its capital
base.

He declined to mention how much it expects to raise from the
IPO.

He also said BRI's net profit is expected to rise to Rp 1.6
trillion this year from Rp 1.5 trillion last year.

The retail bank plans to channel Rp 8 trillion into new loans
this year, he added.

BRI also plans to issue between Rp 1 trillion and Rp 2
trillion of subordinated bonds in the first half of the year to
improve its capital base.

BRI is one of several state-owned companies the government
plans to sell this year to raise Rp 8 trillion in funds, in a bid
to reduce the budget deficit. Other companies include PT Bank
Mandiri, the country's largest bank, and pharmaceutical company
PT Indofarma. --Dow Jones