Buana to issue Rp 500b sub debt

Buana to issue Rp 500b sub debt

JAKARTA: PT Bank Buana Indonesia said on Friday it will issue
up to Rp 500 billion (US$59 million) in 10-year subordinated debt
in early April to support loan expansion in the future.

The mid-sized bank set April 2-6 as the offering period for
the bond, which will be sold at par.

It hasn't decided the coupon yet as it is waiting for the
rating results from local rating agency Pefindo. Bank Buana is
one of several banks that survived the 1997-98 Asian financial
crisis without a government bailout.

The bank's net profit in 2003 dropped 12 percent to Rp 221.85
billion from Rp 251.25 billion mainly due to lower income from
foreign currency transactions and from securities it held, it
said.

Since last year, several banks have issued subordinated debt
to reduce reliance on short-term deposits as a source of funds.
-- Dow Jones