Danamon to issue subdebt
Danamon to issue subdebt
PT Bank Danamon Indonesia, the country's fifth-largest bank in asset terms, plans to issue Rp 500 billion (US$56.8 million) to Rp 1 trillion of subordinated bonds this year, its director, Riswinandi, told Dow Jones Wednesday.
"The issuance of the sub-debt is aimed at strengthening the bank's working capital and to increase its capital adequacy ratio," said Riswinandi. As of Dec 31, 2002, the bank's capital adequacy ratio was at 25.3 percent.
Riswinandi, who goes by one name like most Indonesians, didn't provide further details.
The government owns a 99.36 percent stake in Bank Danamon, which was formed after a merger of several local banks in the wake of the 1997-98 Asian financial crisis. It plans to divest most of its stake in the first quarter of this year.
The government is hoping to sell a 20 percent stake via a public offering and a 51 percent stake to a strategic shareholder, which will also have management control of the bank.
To attract investors, Bank Danamon's management recently boosted the share price of the bank by combining five existing shares to one new share. -- Dow Jones
;Agencies; ANPAf..r.. CorporateBrief-HK-ShangriLa Shangri-La yield to rise by 10% JP/ /
Shangri-La yield to rise by 10%
HONG KONG: Hong Kong-listed hotel group Shangri-La Asia Ltd. expects its revenue per available room, or yield, for its China operations to grow this year, building on the 11 percent on-year rise in 2002, a CLSA analyst said Wednesday.
Shangri-La expects its yield in China to rise by a further 10 percent in 2003 as lower room rates boost occupancy, the analyst said after meeting with Shangri-La Asia Chief Financial Officer Madhu Rao, who isn't immediately available for comment.
China is expected to contribute up to 50 percent of Shangri-La Asia's annual earnings over the next three years, compared with 37 percent in 2002 and 28 percent three years ago, the analyst said.
Shangri-La Asia is penciling in further expansion in China where it currently owns or manages 16 hotels with 8,150 rooms available, the analyst said in a research note.
Rao said he expects that to nearly double to 30 hotels with 16,000 rooms within the next five years, according to the analyst. The hotel group experienced difficult operating conditions in most of Asia in 2002, except for Hong Kong, China, and Jakarta where yields improved, the analyst said. -- Dow Jones
;Agencies; ANPAf..r.. CorporateBrief-Honda-diesel Honda unveils its first diesel engine JP/ /
Honda unveils its first diesel engine
TOKYO: Major Japanese car maker Honda on Wednesday unveiled its first diesel engine to target the environment-sensitive European market.
Honda Motor Co. Ltd. plans to mass-produce the 140-horsepower 2.2 liter i-CTDi engine in Japan and install it in its new Honda Accord, which will be marketed in Europe from late 2003.
The all-aluminum diesel engine, which features a turbo-charger and four valves per cylinder, will clear European emission standards, the firm said.
Honda has so far sold diesel-powered automobiles in Europe by purchasing engines from other companies.
"It took us four to five years to develop our first diesel engines," said Honda spokesman Kaoru Tanaka.
"Without our own diesel engines, we cannot fight in Europe, where diesel engines are dominating the region's market," Tanaka said. -- AFP