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Maybank Indonesia plans to issue bonds and hold rights issue
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Maybank employees serve customers at the office of the Malaysia-based lender. (Courtesy of http://www.maybank.com//File)
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alaysian-owned lender Bank Maybank Indonesia plans to issue bonds in the first half of the year and hold a rights issue in the second half to support credit expansion.
The bank aims to collect Rp 300 billion (US$22.5 million) to Rp 500 billion from the bond issuance, while from the rights issue it expects to earn around Rp 1.5 to Rp 2 trillion, said Bank Maybank finance director Thilagavathy Nadason.
Nadason, however, said the bond issuance was still under consideration.
(Read also: Maybank Indonesia sells stake in WOM Finance to Reliance Capital Management)
"The rights issue will be held in the second half of this year, while for the bonds, they may or may not be issued, depending on our fund supply," Nadason said during the bank's 2016 performance press conference in Jakarta on Thursday.
Maybank group will be the standby buyer of the rights issue. It currently holds 78.98 percent shares in Maybank Indonesia through Sorak Financial Holdings Pte. Ltd and Maybank Offshore Corporate Services (Labuan) Sdn Bhd, with 45.02 percent and 33.96 percent ownership, respectively.
"The rights issue might take 10 to 15 percent ownership," she said.
Other than the bond and rights issue, the bank also expects incoming funds from the sale of 68.55 percent shares in PT Wahana Ottomitra Multiartha (WOM Finance) to PT Reliance Capital Management for Rp 673.77 billion.
The sale awaits approval from the Financial Services Authority (OJK). (bbn)
