Mar 5, 2012

BRI considers Rp3 trio subordinated bond

PT Bank Rakyat Indonesia Tbk (BRI) is exploring an opportunity to issue a Rp3 trillion subordinated bond with 5-7 year maturity. The proceed will be used by the state-controlled bank to maintain a 15% capital adequacy ratio (CAR).
Finance Director Achmad Baiquini said the bank's CAR is so far sufficient. "We consider to explore chance to issue subordinated bond in the second half of this year," he said as quoted by Bisnis Indonesia today.
According to him, BRI so far does not need to use an equity financing to support its actions for acquisitions. Last year, BRI estimated to post a Rp15.08 trillion net profit, a 31.47% increase from a year earlier. As a result, the bank's capital rose to Rp36.67 trillion. The CAR inreased to 14.96% from 13.76%. 
Disclosure: No position at the stock mentioned above.

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