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BRI raises $6.73b in Southeast Asia's 'biggest' rights issue
The rights issue is part of the government’s plan to create a state-owned micro lender holding firm with BRI at the helm.
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Recovery talks: PT Bank Rakyat Indonesia (Persero) Tbk (BRI) president director Sunarso speaks in a panel about inter-stakeholder collaboration to push local micro, small and medium enterprises forward in an online forum organized by the Center of Reform on Economics think tank on July 15. (Photo courtesy of BRI)
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tate-owned lender PT Bank Rakyat Indonesia (BRI) raised Rp 96 trillion (US$6.73 billion) from a rights issue this month, the biggest transaction of this type in Southeast Asia, according to the Indonesia Stock Exchange president director Inarno Djajadi.
The rights issue is part of the government’s plan to create a state-owned micro lender holding firm with BRI at the helm.
The bank sold around 28 billion shares through the rights issue, Inarno told a virtual briefing on Wednesday.
Through the transaction, the government transferred Rp 54.7 trillion worth of shares in two state-owned finance firms, pawnshop chain Pegadaian and micro-lending firm Permodalan Nasional Madani (PNM), to BRI.
Read also: Micro lender holding hoped to boost financial inclusion
“We want to provide financing to as many people as possible with as low as possible close, that’s the point of the synergy between BRI, Pegadaian and PNM,” BRI chief executive Sunarno told the same briefing.
The remaining proceeds, in cash, will be used as working capital for BRI to develop ecosystems for the newly formed holding firm, the company said.
According to a disclosure from BRI, after the rights issue the company will have total assets of Rp 1,515 trillion and total loan distribution of Rp 997 trillion, compared to Rp 1,411 trillion in assets and Rp 914 trillion in loans before the transaction.
