Danamon selects bonds issue underwriters

Danamon selects bonds issue underwriters

The Jakarta Post, Jakarta

Bank Danamon, the country's fifth-largest lender in terms of
assets, has appointed Danareksa Sekuritas as one of the
underwriters for its Rp 3 trillion (US$328 million) bond issue
this year, a top executive of the firm says.

Director Daniel Iskandar said on Wednesday that the rupiah-
denominated bonds, which are scheduled to be issued in June, were
also underwritten by HSBC Securities Indonesia and PT Trimegah
Securindo Lestari.

A senior officer at the bank, Kun Kim Lan said the proceeds
would be used to expand lending, which was expected to grow by 20
percent this year.

Last March, Danamon issued $300 million of subordinated bonds
to raise funds to finance its acquisition of automotive financing
company PT Adira Dinamika Multi Finance.

Adira's acquisition was aimed at smoothing the way for its
credit expansion.

Consumer and commercial loans -- including those to small and
medium enterprises -- have boosted lending. Based on its
financial reports, as of last September, outstanding loans of the
bank had grown by 27.7 percent to Rp 26.75 trillion from Rp 20.95
trillion in the same nine-month period last year.

In the first nine months of last year, Danamon recorded a net
profit of Rp 1.73 trillion. The bank is 62 percent controlled by
Singapore's Temasek Holdings Pte and Deutsche Bank AG.