Indonesian Home Lender BTN Cuts Aim for Rights Issue Funds

By webadmin on 05:18 pm Jul 27, 2012
Category Archive

Grace Dwitiya Amianti

Indonesia’s biggest home lender, Bank Tabungan Negara, reduced the proceeds target from its planned rights issue to a range of Rp 1.6 trillion to Rp 1.8 trillion ($170 million to $191 million) from Rp 2 trillion previously, its chief said on Wednesday.

The state-controlled BTN plans to sell 10 percent of its enlarged capital with shares being offered at a range of Rp 1,250 to Rp 1,600 each.

Iqbal Latanro, the president director of BTN, said that even though the proceeds target was reduced, it would still be adequate to support the lender to finance the expansion of loans, which are predicted to grow 26 percent this year.

Iqbal believed the lender’s rights issue plan would receive a positive response from investors.

He said that amid uncertainty in Europe, investors are looking to invest in emerging market economies with solid economic foundations.

He said the rights offering was expected to take place in the second week of October. BTN is now preparing its June financial report.

BTN appointed investment bank Credit Suisse as international marketing agent for the rights issue. BTN has also appointed three underwriters for the share sale: Bahana Securities, Danareksa Sekuritas and Mandiri Sekuritas.

The government, which owns 71.6 percent of the lender, according to Iqbal, will not execute its right to buy the shares before other investors. The entitlement will be sold to investors.

On Thursday, BTN’s shares fell 1.5 percent to Rp 1,300.