NISP to issue Rp 200b notes

NISP to issue Rp 200b notes

JAKARTA: Indonesia's PT Bank NISP said Thursday it plans to issue Rp 200 billion (around US$21.7 million) worth of three-year medium term notes later this month.

Bank NISP said in a statement it has mandated PT Andalan Artha Advisindo, a local securities firm, to arrange the issue while PT Panin Sekuritas will be co-arranger. Other details of the issue haven't yet been finalized.

Bank NISP said it will use the proceeds from the planned issue to increase its provisioning for loans to small- and medium-size businesses.

As of Aug. 31, the bank's capital adequacy ratio was at 14.4 percent, far exceeding the 8 percent ratio requirement for national banks stipulated by the local central bank.

International Finance Corp, a commercial and investment arm of the World Bank, holds 15.05 percent stake in Bank NISP.

The bank has 92 branches throughout Indonesia. -- Dow Jones