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Jakarta Post

BCA to issue first tranche of Rp 500b junior bonds

  • Winny Tang

    The Jakarta Post

Jakarta   /   Wed, May 16 2018   /  02:33 am

Bank Central Asia (BCA), the country’s biggest private lender, plans to issue subordinated bonds to strengthen its capital structure as part of its obligation as one of Indonesia’s systemically important banks.The publicly listed lender is hoping to attract Rp 1 trillion (US$71 milllion) in funds from the subordinated bonds, also known as junior bonds, which will be divided into two phases.The first tranche of Rp 500 billion will be offered in tenors of seven, ten and 12 years. The book building period will start in May, followed by a listing at the Indonesia Stock Exchange in July.The bonds come in three series, namely Series A with a coupon rate of 7.5 percent to 8.25 percent, Series B with a coupon rate 7.75 percent to 8.5 percent and Series C with a coupon rate of 8 percent to 8.75 percent.“BCA is planning to issue subordinated bonds in order to meet its obligation to [develop]...