Niaga to sell $100m in bonds

Niaga to sell $100m in bonds

JAKARTA: PT Bank Niaga, an Indonesian lender controlled by Malaysia's second-largest bank, plans to meet investors in Asia and Europe within the next three weeks to gauge demand for a US$100 million bond sale it delayed in April.

The Jakarta-based bank plans to offer the bonds to investors in Hong Kong and London, Peter B. Stok, president-director of Niaga said in an interview. "Hopefully we can sell the bonds soon," he said, without providing details on the 10-year debt. Niaga met with investors in Singapore in early June.

Bank Niaga, which is 61.1 percent owned by Commerce Asset- Holding Bhd. of Malaysia, plans to use the bond proceeds to expand its business and boost its capital adequacy ratio. Citigroup Inc. and CIMB Bhd., Commerce Asset-Holding's investment- banking unit, will manage the sale.

Niaga has a B2 issuer rating, or five levels lower than investment grade, from Moody's Investors Service. -- Bloomberg