Standard Chartered leads Bank Bali management
Standard Chartered leads Bank Bali management
JAKARTA (JP): The Indonesian Bank Restructuring Agency (IBRA)
entered into a strategic partnership with Standard Chartered Bank
on Monday, whereby the United Kingdom-based bank will head Bank
Bali's new management team.
IBRA said in a press statement this was part of the agreement
which will see the foreign bank partly finance the
recapitalization of publicly listed Bank Bali.
"IBRA has formed a strategic partnership with Standard
Chartered Bank to recapitalize Bank Bali," said the agency, which
took over Bank Bali on Friday.
The agency said Standard Chartered appointed its Southeast
Asia head for corporate and institutional banking Douglas Beckett
to lead the new management team of Bank Bali.
Bank Bali will soon offer a rights issue to raise some Rp 4.3
trillion to lift its capital adequacy ratio (CAR) to the
government-set 4 percent minimum, according to the agency.
IBRA said it signed an investment agreement with Standard
Chartered in which the UK bank would purchase part of the rights
issue and take a 20 percent stake in Bank Bali, while IBRA would
purchase the remaining rights issue.
Standard Chartered said in April it had put aside some US$56
million to purchase 20 percent of Bank Bali.
"Standard Chartered will have the right to buy up to 100
percent of IBRA's shares in Bank Bali in the future through a
call option," the statement said.
Beckett will be assisted by several of Bank Bali's executives,
including IGM Mantera and Hendri Kurniawan, both directors at the
bank, according to IBRA.
However, former Bank Bali president Rudy Ramly will not be
included on the management team.
The agency said it had also formed a supervisory team
consisting of representatives from Standard Chartered and IBRA.
The IBRA representatives on the team will include J.B.
Sumarlin and I.N. Suwandhana, the former president commissioner
and commissioner of Bank Bali, respectively.
The agency said it would submit the names of those on the new
management team to Bank Indonesia for final approval.
IBRA chairman Glenn S. Yusuf said the agreement with Standard
Chartered reflected the confidence of foreign investors in the
potential of the country's banking sector.
He added that the deal was also further progress in the effort
to restructure and recapitalize the country's banking sector.
"We have confidence in Indonesia's economy and this strategic
partnership will considerably strengthen Standard Chartered's
presence in Indonesia," Standard Chartered chief executive Rana
Talwar was quoted by Reuters as saying in London on Monday.
In its efforts to restructure the banking industry, the
government has recapitalized seven private banks and four
nationalized banks. It has financed between 80 percent and 100
percent of the recapitalization program by issuing some Rp 103
trillion in bonds. (rei)