BTN to issue $152.9m five-year bonds

BTN to issue $152.9m five-year bonds

JAKARTA (JP): State-owned Bank Tabungan Negara (BTN) will
issue five-year bonds next month to raise up to Rp 350 billion
(US$152.9 million) from the public to help finance its housing
loans, the bank's president said yesterday.

"Actually the value of the bonds, called BTN Bonds VI, is Rp
250 billion and we will increase the size by another Rp 100
billion if the offering is oversubscribed," Widigdo Sukarman said
in a public presentation at the BTN Tower here.

He explained that the bonds will be divided into two
categories: Series A and Series B. Series A will offer a fixed
interest rate in the first year and a floating rate on the basis
of an average time deposit rate in the following four year, while
the interest on Series B will be floated at 1.25 percent per
annum above the Indonesian Rupiah Swap Offered Rate.

"The exact figures of the interest rates will be known after
the Capital Market Supervisory Agency approves the bond issuance
on Dec. 1," Widigdo said.

He said that the BTN Bonds VI, underwritten by PT Sigma
Batara, are the first bonds to get an "A" rating from the
Indonesian rating agency, PT Pefindo.

BTN gained a before-tax profit of Rp 84 billion during the
first six months of this year, Widigdo said.

As of the end of June, the bank recorded total assets of Rp 8
trillion, its loans stood at Rp 5 trillion and deposits stood at
Rp 3 trillion. (10)