PermataBank to offer Rp 500b in bonds

The Jakarta Post , Jakarta | Mon, 10/30/2006 11:19 AM | Business

The Jakarta Post, Jakarta

PermataBank plans to issue its first-ever bonds worth Rp 500 billion (US$54.3 million) in late November on the back of increased profits this year.

The proceeds will be used in part to finance the lender's business expansion plans and to strengthen its capital and capability to finance long-term loans, PermataBank corporate secretary Imam Teguh Saptono said Sunday.

""We reported the bond issue plan to the Capital Markets Supervisory Agency (Bapepam) last week,"" he said. ""We will soon hold a public meeting for the offering, and then begin the book-building process.""

PermataBank, the country's eight-largest lender by assets, has seen satisfactory results for this year's third quarter, which may help buttress demand for its planned bond offering.

It reported an unaudited net profit of Rp 223.4 billion in the first nine months of this year ending on Sept. 30, up 21.6 percent from the same period in 2005.

The bank increased lending by 3 percent to Rp 22.2 trillion, its total assets grew 8.6 percent to Rp 36.4 trillion, while its capital adequacy ratio (CAR) improved to 12.8 percent, above the central bank's minimum 8 percent requirement.

CAR compares a bank's capital with its risk-weighted assets, including loans.

PermataBank is majority owned by a consortium of London-based Standard Chartered Bank PLC and local partner PT Astra Internasional, with a total stake of 89 percent. Last month, the government sold its 25.9 percent in the bank for Rp 1.75 trillion.

Comments (0) | Post comment

A | A | A |