Feb 9, 2011

Bank Mutiara to unveil Rp1 trio subdebt

PT Bank Mutiara Tbk plans to issue Rp500 billion-Rp1 trillion subordinated debt with 5-7 years tenors.
Treasury Director of Mutiara Bank Ahmad Fajar revealed that through this corporate action, the company expects its capital adequacy ratio to grow rise 12%-15%. The private lender plans to realize such subdebt issuance in the middle of next year.
At the moment, Bank Mutiara’s CAR stands at 11.69%, yet it will be further eroded merely due to the company’s credit expansion.
“With regard to this corporate action, we expect to derive at the lowest of Rp500 billion to Rp1 trillion. Certainly, we seek to generate the maximum amount,” he said yesterday.
Assuming the maximum proceed reaches Rp1 trillion, then it will contribute Rp500 billion to the company’s II tier capital.
Disclosure: No position at the stock mentioned above.  

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