Tiara, Danamon rights issue

JAKARTA (JP): Bank Danamon and Bank Tiara Asia, both under the supervision of the Indonesian Bank Restructuring Agency, said on Monday they would issue rights shares to raise funds for recapitalization.

Danamon, according to a statement from the Jakarta Stock Exchange, will hold a 349-for-4 rights issue priced at Rp 175 (2 U.S. cents) apiece between April 5 and April 12.

Tiara Asia will offer a 237-for-one rights issue priced at Rp 125 apiece between April 1 and April 12.

Both Danamon and Tiara Asia set the par value of their right shares at Rp 5 apiece.

Proceeds are to be used to boost their capital adequacy ratio level in line with the government's requirement for the recapitalization program.

The government took over Danamon and Tiara Asia in August, along with Bank Central Asia and Bank PDFCI, following their failure to repay the government for its emergency liquidity support to the banks. (rid)