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