Danamon bond issue postponed

Danamon bond issue postponed

JAKARTA: Due to high market volatility and an inevitable future
rise in Bank Indonesia's benchmark interest rate, Bank Danamon
has decided to postpone its plans to issue Rp 2.5 trillion
(US$264.55 million) in bonds.

The country's fifth largest lender said in a statement that
the delay, approved by underwriters Danareksa Sekuritas, Trimegah
Securities and DBS Vickers Securities Indonesia, was so as to
allow time for market conditions to improve and had nothing to do
with market demand.

"The market showed strong interest during the initial book
building process, but some investors are asking for a higher
coupon rate," it said. It was unclear when the bond issue will
now take place.

The bank had planned to use the proceeds of the bond sale to
expand its lending. Danamon is 62 percent controlled by
Singapore's Temasek Holdings Pte and Deutsche Bank AG. -- JP