BRI unveils coupon for Rp 500b bond

BRI unveils coupon for Rp 500b bond

JAKARTA: Bank Rakyat Indonesia (BRI) said on Wednesday its 10- year Rp 500 bonds will carry an indicative annual coupon of between 13-14.37 percent for the first six years.

The coupon for the remaining four years will range from 23- 24.35 percent, said BRI finance director I Wayan Alit Antara.

The bank has an option to buy back the bonds in the sixth year, he said.

The bonds, which will be offered between Jan. 6 and Jan. 8 and listed on the Surabaya Stock Exchange on Jan. 14, will be unsecured, Antara said.

BRI will use the proceeds to strengthen its working capital and increase lending. The bank lends mainly to farmers and small businesses.

PT Andalan Artha Advisindo, PT Trimegah Securities and PT Danareksa Sekuritas will act as joint lead underwriters for the bonds, which target domestic investors.

Some investors, who attended the bond offering presentation in Jakarta, said they weren't overly concerned by the Rp 294 billion lending fraud involving BRI in September as the bank has been taking efforts to recover its losses. -- Dow Jones