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Panin Bank to offer Rp 1.5t in bonds
The Jakarta Post , Jakarta | Sat, 04/07/2007 3:02 PM | Business
The Jakarta Post, Jakarta
Panin Bank is set to offer Rp 1.5 trillion (US$164 million) in bonds next month, and use the proceeds to strengthen its capital base and financing capabilities.
The bonds will be divided into three series with different maturities and interest rates, Panin treasury director Johnny N. Wiraatmadja told reporters Thursday.
The A series bonds will mature in three years and carry coupons of between 9.25 and 9.75 percent, while the B series bonds mature in three years and carry coupons of between 10.25 and 10.75 percent.
The C series bonds are to mature in seven years and carry coupons of between 10.50 and 11 percent.
The bonds, which will be officially listed on the Surabaya Stock Exchange on May 25, represent the second bond issue for Panin, which issued Rp 1.3 trillion-worth of bonds in 2003.
Panin is among the top ten domestic banks by assets. As of December 2006, its total assets amounted to Rp 40 trillion. Its 2006 net profit rose 29 percent to Rp 730 billion from Rp 564 billion in 2005.
The bank also extended 25.3 percent more loans in 2006, with its loan-to-deposit ratio standing at 80.47 percent.
The bank has appointed PT Deutsche Securities Indonesia, PT Indo Premier Securities and PT Evergreen Capital to manage the bond issue.
Edy Heryanto, Panin's commercial banking director, said that this year the bank would continue to focus its lending on small and medium enterprises through its SMART (Small & Medium Retail) product, as well as the consumer sector. Both of these sectors accounted for 64 percent of the bank's lending last year.
""We expect to expand our lending by 30 percent this year, which converts to about Rp 6 trillion in monetary terms.""
He said the bank was planning to finance more infrastructure projects this year, including the construction of a power plant in Sulawesi and a tolled expressway in East Java, with total infrastructure financing amounting to Rp 2 trillion.
Panin would also open some 50 more branches throughout Indonesia this year. Currently, it has 259 branches and 14,000 ATMs around the country, and a representative office in Singapore. It also provides Internet banking and mobile banking services.(04) More Web News
