Mayapada plans rights issue

Mayapada plans rights issue

JAKARTA (JP): Publicly listed Bank Mayapada International will
launch a rights issue in July to raise Rp 160 billion (US$21
million) for expansion programs.

Mayapada chairman Tahir said the bank would open branches in
Jakarta, Medan and Bandung in its expansion into the consumer
market.

"We plan to increase our consumer portfolio to 80 percent from
50 percent at present," he said.

The company's capital adequacy ratio -- the ratio of equity
capital to risk weighted assets -- is now 17 percent, he said,
adding that he planned to reduce the ratio to slightly above 10
percent, which is still far above the minimum 4 percent mandated
by the government.

Despite losses in the past two years, Tahir estimated the bank
would book Rp 5 billion to Rp 10 billion in net profit this year.
(bkm)