Danamon to issue Rp 2.5t in bonds

JAKARTA: The country's fifth largest lender, Bank Danamon, has announced plans to issue Rp 2.5 trillion (US$271 million) in long-term bonds, less than the previously reported Rp 3 trillion bond issue.

In a letter sent to the Jakarta Stock Exchange, the bank said it had appointed Danareksa Sekuritas, Trimegah Securities and DBS Vickers Securities Indonesia as the joint lead underwriters for the bond issue.

The bank plans to use the proceeds from the rupiah-denominated bonds to expand lending, which in general is expected to grow by 20 percent this 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. -- JP