Bank Permata to boost capital by Rp 700 billion

Publicly listed PT Bank Permata (BNLI) plans to raise up to Rp 700 billion (US$75.6 million) from the first issuance of subordinated bonds, the company says.

Permata vice president director Herwidayatmo said on Tuesday that the company would use the funds to support its business growth and expand loans.

“We will channel the derived funds for loans to crisis-resistant sectors, such as mining, agriculture, food processing, transportation and logistics,” Permata wholesale banking director Roy Arman Arfandy said here after a press conference on the issuance of the bonds.

“Moreover, we will also strengthen our housing credit.”

A subordinated bond ranks below other debts in terms of claims on assets or earnings and is unsecured and riskier for lender as it will only be paid out after the senior debt holders are fully paid.

The first issuance of the bonds is part of the company’s plan to raise Rp 2.5 trillion within two years.

The bonds, which will mature in seven years, are offered at the same price as the value, with earnings of between 8.5 percent and 9.5 percent per annum paid on a quarterly basis.

The bonds will be on offer between June 14 and 18, and will be listed on the Indonesia Stock Exchange (IDX) on June 22.

PT Standard Chartered Securities Indonesia, PT Mandiri Sekuritas, PT NISP Sekuritas and PT OSK Nusadana Securites Indonesia will be the joint lead underwriters, while PT Bank CIMB Niaga will act as trustee.

Permata recorded Rp 101.32 trillion in total assets last year, up 37 percent from Rp 73.84 trillion in 2010, and booked a 14.5 percent growth in net profits to approximately Rp 1.15 trillion in 2011, from the year before.

Its capital adequacy ratio (CAR) remained at 14.1 percent as of last year. (yps/mtq)