rivate lender Bank Mayapada Internasional has secured official acknowledgement by the Financial Services Authority (OJK) for its status upgrade as a BUKU III bank.
The BUKU III category, one of four groupings that divide lenders based on the size of their core capital, consist of banks with core capital of between Rp 5 trillion (US$376.1 million) and Rp 30 trillion.
It is a notch above the BUKU II status that groups those with core capital of between Rp 1 trillion and Rp 5 trillion, in which Mayapada used to be categorized.
Mayapada’s status upgrade was officiated by an OJK official letter dated June 2.
The inclusion of Mayapada into the BUKU III category is a reflection of its shareholders' commitment to strengthen the lender's capitalization, the bank's official statement circulated on Friday reads.
(Read also: Bank Mayapada seeks to augment consumer banking)
The publicly listed lender has carried out a rights issue nine times and subordinated bond offerings four times.
"According to the bank’s business plan, it is preparing its 10th rights issue with a proceeds target of Rp 1 trillion and two-year subordinated bond shelf registration worth Rp 750 billion per year starting this year, using an audited financial report in March," the statement reads.
The corporate actions aim to strengthen the lender's capital to support its expansion and capital expenditure (capex) to improve information and technology infrastructure.
The bank aims to book 17 percent in loan disbursement growth this year, while third-party funds (DPK) are expected to rise 19.6 percent.
As of March, its loans had jumped 33 percent year-on-year (yoy) to Rp 49.12 trillion, while its DPK increased 26 percent to Rp 57.74 trillion. (hwa)
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