TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
Bank Muamalat to issue Rp 200 billion MTN
Change Size
Customers wait for service at Bank Muamalat in Jakarta. (Tempo/Dasril Roszandi)
T
he country's first sharia lender PT Bank Muamalat Indonesia will issue Rp 200 billion (US$15 million) in medium-term notes (MTN) in the second half of 2017.
Bank Muamalat president director Endy Abdurrahman said the sharia MTN consisted of Rp 100 billion in senior notes and Rp 100 billion in subordinated loans.
The MTN will replace some sukuk (sharia bonds) that matured this year. "Our sukuk have just matured, so we will issue the MTN to refresh our funding," Endy said in Jakarta on Friday.
The MTN have received an idA(sy) rating from rater PT Pemeringkat Efek Indonesia (Pefindo) for the senior notes. For the subordinated notes, Pefindo has given an idBBB(sy).
"The subordinated MTN rating is two notches below the corporate rating because of the existence of a non-viability clause, reflecting the risk of the bond being written down or converted," Pefindo analyst Dyah Puspita Rini wrote in the release.
Pefindo put the lender's outlook rating as stable.
Bank Muamalat Indonesia recorded a net income increase of 8.05 percent to Rp 80.5 billion in 2016, compared to Rp 74.5 billion in 2015.
However, in the first quarter of 2017, net income decreased by 51.9 percent to Rp 12.27 billion compared with Rp 25.21 billion in the same period last year. (bbn)
