Niaga's bond issue plans approved

Niaga's bond issue plans approved

JAKARTA: Bank Niaga, an Indonesian lender controlled by Malaysia's second largest bank, said it received central bank approval for the planned sale of as much as US$100 million of bonds.

Bank Indonesia approved the sale two weeks ago, said Peter B. Stok, president director of Niaga, in a telephone interview from Kuala Lumpur.

"We will meet investors in Singapore, Hong Kong and probably London to gauge their demand later," Stok said.

Bank Niaga, which is partly owned by Commerce Asset-Holding Bhd. of Malaysia, plans to use the proceeds of the bond sale to boost capital and expand its business. The lender in December hired Citigroup Inc. and CIMB Bhd., Commerce Asset-Holding's investment-banking unit, to manage the sale.

Niaga and other Indonesian lenders are expanding lending, taking advantage of increasing consumer and corporate demand for credit. The Indonesian economy is forecast by the government to expand 5.5 percent this year after 5.1 percent growth last year. -- Bloomberg