BRI receives $480m subscriptions

BRI receives $480m subscriptions

JAKARTA: Bank Rakyat Indonesia on Thursday priced its US$150
million international subordinated bond at a yield-to-maturity of
7.78 percent, a source close to the deal said.

The source told Dow Jones Newswires that the state-owned bank
received a total of $480 million in subscriptions for the bond.

UBS AG is the lead underwriter.

Moody's Investors Service has assigned a B3 rating to the
bond, reflecting the "subordinated status of the notes, strong
government support for the bank, as well as BRI's unique and
profitable franchise."

The subordinated bond is callable in 2008 before its tenor
ends in 2013.

The bank, which has the most extensive network of bank
branches in Indonesia, will use the proceeds to expand its
capital base.

Besides the dollar-denominated bond, BRI is also preparing to
issue Rp 1 trillion ($117 million) in bonds. That is expected
after the bank has completed an initial public offering of shares
slated for October.

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