Indonesian BIS raises $ 6.73 billion in rights issue


ABRI dds commentary, details

JAKARTA, September 29 (Reuters)State lender PT Bank Rakyat Indonesia (BIS) raised 96 trillion rupees ($ 6.73 billion) in a rights issue this month, the largest such deal in South Asia -Is, according to the director of the Indonesian Stock Exchange Inarno Djajadi.

TThe rights issue is part of the government’s plan to create a holding company for “ultra micro” state finance companies with the BIS at the head.

The bank has sold around 28 billion shares through the rights issue, Inarno said in a virtual briefing on Wednesday.

Through the transaction, the government transferred 54.7 trillion rupees of shares in two public finance companies, Pegadaian pawnshop chain and Permodalan micro-credit firm Nasional Madani (PNM), shelter.

We want to provide funding to as many people as possible with as low a proximity as possible, this is the point of the synergy between BRI, Pegadaian and PNM, “BRI General Manager Sunarno said at the same briefing.

The remaining proceeds, in cash, will be used as working capital for BRI to develop ecosystems for the newly formed holding company, the company said.

AAccording to a disclosure from BRI, after the rights were issuedthe company will have total assets of 1.55 trillion rupees and 997 trillion rupees in loan distribution. This compares to 1,411 trillion rupees in assets and 914 trillion in loans before the transaction.

($ 1 = 14,255,000 rupees)

(Report by Fransiska Nangoy Editing by Ed Davies)

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