Jul 15, 2011

Bank Danamon to hold rights issue

PT Bank Danamon Indonesia Tbk last night announced a rights issue in a bid to raise equity capital.
The bank, in an official statement, has informed the plan to Bapepam-LK and IDX yesterday.
The bank will provide additional details of the rights issue to its shareholders once the registration statement related to the offering has been filed with Bapepam-LK, which is expected to be in the next several weeks.
In the first quarter of 2011, Bank Danamon has a strong capital position with consolidated and stand alone CARof 14.7% and 12.1%, respectively, which are well above the minimum requirements of 8% set by Bank Indonesia.
The rights issue will further strengthen the Bank’s capital position and enable it to strengthen existing customer relationships and grow its loan book to increase market share.
"In view of our confidence in the Indonesian economy and banking sector, we are undertaking the rights issue to further strengthen the Bank’s capital and accelerate the Bank’s expansion in this favorable operating environment. The capital raised will enable us to continue to improve our market position in Indonesia and to take advantage of opportunities arising in the near term,” said President Director Henry Ho. 
Bank Danamon has appointed Citi and Deutsche Bank as standby purchasers and PT Danareksa Sekuritas as arranger.

Disclosure: No position at the stock mentioned above.  

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