BRI issues new bonds to support long-term loans
The Jakarta Post
State-owned lender Bank Rakyat Indonesia (BRI) is offering bonds with a goal to pocket Rp 7 trillion (US$537.76 million) of proceeds in the near future, to expand long-term loans and prevent a maturity mismatch in its source of funds.
BRI treasury director Haru Koesmahargyo said the bank wanted to disburse more long-term loans such as mortgages. However, most third-party funds at the bank are savings and deposits, which are short-term funding.
"We are currently in the book-building period so the coupon rate is not available yet. The bonds will come onto the market around Nov. 22 or 23," he said after a press conference on the company’s third quarter performance, in Jakarta on Tuesday.
The bonds, he further explained, would come in five series, each with different maturity. Series A has a 370-day maturity, series B has a three-year maturity and series C has a five-year maturity, while series D and E will mature in seven and 10 years, respectively.
Haru said the debt instruments were issued to anticipate increasing loan demand amid a periodical decrease in third-party funds in December. Previously, in September, the bank issued medium term notes (MTN) worth Rp 1.8 trillion.
"The loan demand usually peaks in December, in conjunction with customers’ money withdrawals due to the holiday season. We need to secure our cash as soon as possible," he said. (ags)
You might also like :
- SBY instructs Roy Suryo to shun media
- Afghan migrants go on rampage at Balikpapan detention center
- Saudi drafts drone regulation after security alarm
- Bridge collapses in Tegal, Central Java
- Say no to plastic straws, urges antiplastic campaign
- Avicii death a coming-of-age in electronic music boom
- Jagorawi toll traffic under control thanks to odd-even policy: Jasa Marga
- Introducing Indonesian coffee through ‘Ngopi Sore’ in Washington DC
- Sumatran tiger captured after 100 days of hunting
- Deputy police chief dies in N. Sumatra speedboat accident