BRI to issue bond worth RP 1t

BRI to issue bond worth RP 1t

JAKARTA: State-owned PT Bank Rakyat Indonesia (BRI) said on Wednesday it expects to issue Rp 1 trillion rupiah in seven-year subordinated bonds next month.

Bank Rakyat's President Director Rudjito told reporters he expects the coupon rate to be set around 13 percent.

He didn't elaborate further or specify what the funds would be used for.

Rudjito said there are three candidates that will be selected to underwrite the bonds: local brokerage companies PT Danareksa Sekuritas, PT Andalan Artha Advisindo Sekuritas and PT Trimegah Securities.

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