May 11, 2011

BCA to sell Rp2 trio subordinated bond

PT Bank Central Asia Tbk (BCA), Indonesia's third largest bank by assets, plans to sell Rp2 trillion subordinated bonds in 3Q or 4Q of this year as it seeks to strengthen capital.
 “We aim to sell the subdebt in the third or fourth quarter this year,” Vice President Director Jahja Setiaatmadja said today.
The proceeds from the bond sale would be used to strengthen its capital and thus allow the lender to expand loans by as much as 25%, with consumer loans continuing to be the growth's main driver.
“We expect to keep growing by maintaining a credit expansion rate of at least 20% or to 25%,” he said.
About half of total bond sale proceeds will be allocated for the lender's tier 2 capital.

Disclosure: No position at the stock mentioned above.

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