Indovest to issue rights

Indovest to issue rights

JAKARTA (JP): Publicly-listed Bank Indovest plans to issue
right shares to increase its paid-up capital to at least Rp 100
billion (US$41.06 million) by 1999 from Rp 76.6 billion now, the
bank's president Enap Surjatman said yesterday.

Speaking after the bank's annual shareholders meeting, Enap
said, as a listed bank, Bank Indovest could no longer ask its
shareholders to inject fresh funds.

"Therefore, a rights issue will be the best way for us to
increase capital to the minimum Rp 100 billion in 1999 as
required of publicly listed foreign exchange banks by the central
bank," Enap said.

But Enap did not disclose when the company would make the
rights issue, saying that his party was still considering the
right time to do it.

"At the moment, as you know, the market is not so good for the
rights issue," Enap said.

He said the bank would also increase its capital through
retained earnings.

The bank has earmarked Rp 6.8 billion out of its Rp 12.58
billion net profits last year as retained earnings to beef up its
capital.

The bank also announced yesterday that it would pay cash
dividends of Rp 100 per share, or about 40 percent of last year's
net profits.

Bank Indovest's total assets increased by 12.5 percent to Rp
915.99 billion as of the end of 1996 from Rp 813.85 billion in
1995.

Bank Indovest is 51 percent owned by state-owned Bank Dagang
Negara, 18.14 percent by the Bank of Tokyo Mitsubishi Ltd, 17.43
percent by the Nikko Securities Co Ltd and 13.43 percent by the
public. (rid)