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Bank Victoria levels up through German company’s subscription
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A visitor talks to Bank Victoria booth attendant during an exhibition event. (Kontan/Daniel Prabowo)
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ublicly listed lender Bank Victoria International is officially operating as a foreign exchange bank following capital injection from its new shareholder.
DEG – Deutsche Investitions-und Entwicklungsgesellschaft mbH, a German investment and development company, has subscribed a rights issue of 780 million new shares of Bank Victoria, equal to Rp 277.67 billion (US$20.78 million).
With DEG, one of the biggest investment companies in Europe, controlling 9 percent of Bank Victoria shares, the lender has leveled up its financial capacity and secured approval from the Financial Services Authority (OJK) to become a foreign exchange bank.
(Read also: Indonesia drafting rules to end bank secrecy)
“Our new status will enable us to conduct remittance and trade financial transactions, which becomes our focus this year,” Bank Victoria president director Daniel Budirahayu said on Thursday.
He further explained that the additional capital would be used to expand through the opening of branches in Medan, Makassar, Semarang, Surabaya and Denpasar this year.
Established in 1992, Bank Victoria went public seven years later. It has 103 operational offices in Jakarta, Depok, Tangerang and Bekasi.
Daniel said the lender’s management was committed to developing the bank from a Tier 2, with core capital of between Rp 1 trillion and Rp 5 trillion, to Tier 3 bank, with core capital of between Rp 5 trillion and Rp 30 trillion, within five years. Bank Victoria’s total equity stood at Rp 2.7 trillion in December 2016. (dra/hwa)
