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BRISyariah to launch IPO in 2018
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Expanding businesses – Islamic state lender BRISyariah president director Moch. Hadi Santoso (center) gives information to journalists during a press conference after the company’s public exposé with investors in Jakarta on Oct. 12. The public exposé was related to the company's plan to issue sukuk (Islamic bonds) worth Rp 1 trillion (US$76.8 million) this year. (JP/Winny Tang)
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RISyariah, a subsidiary of state-owned lender Bank Rakyat Indonesia (BRI), has plans to undertake an initial public offering (IPO) in the next two years in a bid to get an alternative source of funds to expand its businesses.
“We will prepare an IPO plan in 2017. Once it is completed, we will be ready for an IPO in 2018,” BRISyariah’s business director Indra Praseno told journalists in Jakarta on Wednesday.
BRISyariah president director Moch Hadi Santoso said the company planned to release about Rp 1 trillion (US$76.73 million) worth of capital into the bourse.
BRISyariah would use the funds it obtained from the IPO to strengthen its capital and to expand its funding portfolio into the infrastructure sector. Its current portfolio mostly catered to the retail and business segments, he said.
Hadi added that BRISyariah had started to fund a toll road project for a state-owned enterprise, although the figure was not too significant.
With more and more people becoming increasingly interested in using sharia banking services, he said, the opportunity for BRISyariah to expand its services had improved considerably.
BRISyariah aims to expand its total financing to Rp 18.8 trillion by the end of the year from around Rp 17.7 trillion in September 2016, Indra said. (win/ebf)
