Panin Bank to issue Rp 650b in bonds

Panin Bank to issue Rp 650b in bonds

JAKARTA: PT Bank Pan Indonesia, or Panin Bank, officially announced Tuesday that it will issue up to Rp 650 billion (US$73.8 million) in subordinated bonds in June to diversify the maturity profile of its debt.

The amount is higher than the Rp 500 billion indicated by an official at the bank.

The bond will have a 10-year maturity callable after five years, the bank said in a prospectus published in a local newspaper on Tuesday.

Panin says it will guarantee the subdebt, which is junior in claim on the company's assets, with all of its current and future assets.

Dealers said Panin's bond is the first local subdebt issue that's guaranteed by assets, which is likely aimed at attracting investors' interest.

Panin hasn't decided the coupon rate for the bond, which it will sell at 100 percent of par. The bank has named Triple-A Securities as the lead underwriter for the issue. -- Dow Jones