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BRISyariah to issue Rp 1 trillion in Islamic bonds
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ATM BRISyariah (tempo.co/File)
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RISyariah, a subsidiary of state-owned lender Bank Rakyat Indonesia (BRI), plans to issue subordinated sukuk (Islamic bonds) worth Rp 1 trillion (US$76.8 million) this year to strengthen its capital.
The sharia-compliant lender expects to boost its capital adequacy ratio (CAR) to 21 percent, up from 14.3 percent at present.
“Currently, our CAR is really tight, so if nothing is done, our financing capacity would be hampered,” BRISyariah president director Moch. Hadi Santoso told reporters at BRI’s headquarters in Jakarta on Wednesday.
The additional capital would pave the way for BRISyariah to expand its banking activities, he added.
The Islamic bond will offer between 9.5 percent and 10.25 percent in profit-sharing and will mature after seven years.
The book-building period will run from Oct. 12 to Oct. 26 and the offering period will be from Nov. 10 to 11. The sukuk, rated A+ by Fitch Ratings, is slated to be listed on the Indonesian Stock Exchange (IDX) on Nov. 17. (win/bbn)
