Two banks to float shares and bonds on local market

Two banks to float shares and bonds on local market

JAKARTA (JP): Modern Bank and Bank Pembangunan Daerah (BPD) of
West Nusa Tenggara announced here yesterday their plans to raise
funds from the public through the capital markets.

Modern Bank will sell around 20 million of its common shares,
while BPD, a development bank owned by the provincial
administration of West Nusa Tenggara, will issue bonds worth Rp
25 billion (US$11.9 million).

Bobby Sudarso, the president of Modern Bank, told securities
analysts during a presentation that his bank hopes to raise
around Rp 44 billion (US$20.95 million) from the sales of the 20
million shares during the initial public offer.

The common shares, which will be offered to the public some
time next month, will account for around 16.67 percent of the
bank's enlarged shares.

Sudarso said that the shares, each with a nominal value of Rp
1,000, would be offered to the public at around Rp 2,200 each,"
he said.

Modern Bank, is a member of the Modern Group, which earlier
listed two of its main subsidiaries, Modern Photo and Modern
Land, on both the Jakarta and Surabaya stock exchanges.

Sudarso said that proceeds to be raised from the initial
public offer would be used to strengthen its capital structure
and to finance expansion projects.

Modern Bank, established in September, 1989, operates 23
branches in Jakarta, Bandung, Denpasar and Manado. The bank
recorded total assets of around Rp 689 billion ($328.09 million)
and a net profit of around Rp 7.4 billion (($3.5 million) in
1993.

Sudarso said that Lippo Securities has been assigned as the
lead underwriter of the bank's public offering.

BPD

BPD of West Nusa Tenggara plans to issue bonds worth Rp 25
billion in June.

The bank's president, Abdul Azim, said here yesterday that
most of the funds to be raised from the bond issue will be used
to finance tourism-related business activities in the province.

Businesses catering to tourists, such as souvenir producers,
transportation services and restaurants, have been mushrooming in
Lombok, a major island in West Nusa Tenggara on the impact of the
rapid development in the tourism industry in the province in the
last three years.

"Tourism-related businesses are a priority in our future
program," Azim said.

The bond offering is lead-managed by Inter-Pacific Securities.

Inter-Pacific president L.G. Rompas said that the yield of the
bonds, which will have a maturity period of five years, will be
based both on floating rates and fixed rates.

"The floating rates will be around 1.5 points above the
average interest rate of six-month deposits, while the fixed rate
offered in the first six months has not been set yet," he said.
(hen)