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Jakarta Post

State lender BTN reaps Rp 5t from bonds issue

  • Prima Wirayani

    The Jakarta Post

Jakarta   /   Wed, July 12, 2017   /   01:35 pm
State lender BTN reaps Rp 5t from bonds issue Workers construct houses at a housing complex in Serpong, South Tangerang, Banten. (Antara/Audy Alwi )

State-owned lender Bank Tabungan Negara (BTN) gathered Rp 5 trillion (US$374 million) in funds from its recent bonds issue, the first part of the bank’s 2017 shelf offering.

The debt papers are to be issued in four series with tenures ranging from three to 10 years and with yields from 8.3 percent to 8.9 percent.

The bonds will be listed on the Indonesia Stock Exchange (IDX) on July 14.

“The bonds received a warm welcome, especially from pension funds, which booked the highest number of purchases,” BTN president director Maryono said as quoted in an official statement circulated on Wednesday.

Read also: BTN targets fifth position this year

The funds collected will be used by the lender to expand its loan disbursement, especially in the mortgage sector, which is the core business of BTN.

“BTN is optimistic it can accelerate the government’s 1 Million Houses program with our financing strategy,” he continued.

BTN hopes to expand its loan disbursement by around 22 percent this year.

As of June, growth stood at around 13 percent compared to the corresponding period last year.

Meanwhile, third party fund collection has also expanded by around 19 percent year-on-year. (bbn)