Servitia set to arrange ten syndicated loans

JAKARTA (JP): The publicly listed Bank Umum Servitia is set to arrange 10 syndicated loans worth Rp 500 billion (US$208 million) this year.

The bank's director Tarunodjojo said Wednesday that each syndicated loan would have a value of Rp 50 billion.

During the first quarter of this year, the bank had arranged four syndication deals including Rp 75 billion for PT Mobile Selular Indonesia (Mobisel) and Rp 45 billion for PT Citra International Finance & Investment, a subsidiary of the Bimantara Citra group, he said.

In March, Bank Servitia also arranged the Rp 50 billion revolving underwriting facility for PT Trimitra Multifinance, a subsidiary of Gabungan Koperasi Batik Indonesia (GKBI).

The bank was now arranging US$27 million syndicated loans for a plastic casing company, he said, adding that the loan would be signed within the next two weeks.

Tarunodjojo said last year the bank arranged a number of loan syndication deals including PT Balito Sanno worth US$22 million, PT Kaltim Sahid Barito Soda Kimia worth US$32.37 million, PT Plasindo Lestari worth US$12 million and issued floating rates notes worth US$20 million.

He said the bank projected an increase in its non-interest income including fee-based income to Rp 18 billion this year, up from Rp 14 billion in 1996.

He said this year the bank's corporate finance would contribute a fee-based income of Rp 10 billion, a banking service of Rp 5 billion and foreign exchange transaction of Rp 3 billion.

He said last year, corporate finance contributed Rp 7.5 billion, banking service Rp 4.5 billion and foreign exchange Rp 2 billion.

"Non-interest income is projected to contribute around 25 percent to the net profit this year," he said.

He said the bank projects to record a net profit of Rp 24 billion this year, up 30 percent from 1996's net profit of only Rp 18.4 billion.

Tarunodjojo said, as of December 1996, the bank had provided total loans worth Rp 1.04 trillion and expected to grow by 30 percent this year.

"We project to allocate credit worth around Rp 300 billion this year," he said.

He said the bank's public funds, which totaled Rp 1 trillion as of December 1996, were expected to increase by 25 percent this year.

"We project to collect around Rp 300 billion this year," he said.

The bank's capital adequacy ratio, the ratio of capital against risk-adjusted assets, reached 10.92 percent as of December 1996.

Total assets were expected to reach Rp 1.7 trillion by the end of this year from Rp 1.37 trillion as of December last year, he said. (09)