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