Jan 26, 2011

BTN aims to raise Rp2.75 trio financing

Housing-focused lender PT Bank Tabungan Negara Tbk (BTN) is considering three sources of financing worth Rp2.75 trillion-Rp4.25 trillion to support its credit expansion plan this year.
BTN’s President Director Iqbal Latanro said that the financings include Rp1.5 trillion-Rp2 trillion bonds issuance, maturing 5-10 years, asset securitization through collective investment contract of asset-backed securities(KIK EBA), valuing Rp750 billion-Rp1.25 trillion and Rp500 billion-Rp1 trillion medium term notes (MTN).
He said that such financing aims to back BTN’s credit disbursement that is expected to grow by 23%-27% compared to the amount in the end of 2009, reaching Rp40.73 trillion.
“In order to support our credit expansion, we would like to issue bonds, asset securitization, and MTN. The later one is a new thing for our company. We expect to realize it as soon as possible," he said.
Besides issuing those three instruments, the Indonesia’s lender is currently reviewing a rights issue plan in 2013 or 2014. Such corporate action aims to maintain the capital adequacy ratio (CAR) above 12%. At the moment BTN posted 16%-17% CAR.
 
Disclosure: No position at the stock mentioned above.

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