Tiara plans rights issue

JAKARTA (JP): Shareholders of nationalized Bank Tiara Asia approved on Monday the bank's plan to issue rights shares to raise Rp 5.3 trillion (US$600 million) for recapitalization.

The bank said in a statement it would issue 42.66 million rights shares priced at Rp 125 at a par value of Rp 5 each.

If the rights issue succeeds, the bank's capital adequacy ratio -- the ratio of equity capital to risk weighted assets -- would rise to 8 percent.

The bank said it had regained the public's trust after being taken over by the government in August 1998. The bank's third party funds had improved from Rp 168 billion in August 1998 to Rp 505 billion at the end of 1998. Third party funds further improved to Rp 1.3 trillion on March 25, 1999. (rid)