Danamon to issue Rp3t of bonds in 2005

Danamon to issue Rp3t of bonds in 2005

Leony Aurora, The Jakarta Post, Jakarta

Bank Danamon, the country's fifth largest lender, plans to issue
Rp 3 trillion (US$326 million) of bonds next year, a top
executive says.

Vice president Emirsyah Satar said on Monday that the rupiah
denominated bonds offering would be conducted within the first
six months of 2005.

According to a statement released earlier, the proceeds would
be used to support the bank's growth and better manage the asset
liability mix of the company.

"There will be about eight local and international
underwriters for this bond issue," said Emirsyah.

Several financial managers mentioned were PT Andalan Artha
Advisindo Sekuritas, PT Danareksa Sekuritas, PT Bahana Sekuritas,
and DBS Vickers Securities.

Danamon issued $300 million of subordinated bonds in March to
raise funds to purchase majority shares in automotive financing
company PT Adira Dinamika Multi Finance.

As of September, outstanding loans of Danamon had grown by
27.7 percent to Rp 26.75 trillion from Rp 20.95 trillion the same
nine-month period of last year, largely boosted by significant
growth in consumer and commercial loans -- including those to
small and medium enterprises.

Loan to deposit ratio was recorded at 74 percent.

Emirsyah said that profit in 2005 was expected to increase by
20 percent. In the first nine months of this year, Danamon
recorded a net profit of Rp 1.73 trillion.

Danamon is 62 percent controlled by Singapore's Temasek
Holdings Pte and Deutsche Bank AG.