Feb 13, 2011

BII to launch Rp1 trillion sub-debt

PT Bank International Indonesia Tbk (BII), controlled by Maybank, aims to raise Rp1 trillion by issuing subordinated debt in May. BII has mandated three lead underwriters of the sub-debt. 
According to BII President Director  Ridha Wirakusuma, BII has picked Bahana Securities, Indo Premier Securities, and Mandiri Sekuritas.
"The sub-debt may have over 5 year maturity and we will initiate to offer in the first week of May," he said. The sub-debt proceed will be used to strengthen the bank's capital and underpin loan expansion.
BII shall issue Rp1 trillion sub-debt in a bid to maintain its CAR at 14%. Its CAR currently stays at 13%. The bank is also eyeing a 20%-25% growth in lending growth this year.
At end of last year, BII channeled Rp48.65 trillion loan. Referring to the growth target in 2011, the bank will channel Rp58.38 trillion-Rp60.81 trillion loan facilities.
BII posted Rp460.98 billion net income last year, a turn around from Rp40.98 billion net loss in the previous year.

Disclosure: No position at the stock mentioned above.

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