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The government will reduce its stake in PT Bank Negara Indonesia from 76.36 percent to 60 percent through a rights issue this year, State-Owned Enterprises Minister Mustafa Abubakar said on Monday.

It was the first time the government had said how much of its stake it would sell via the rights issue, which was announced earlier this year.

BNI, the country’s fourth-largest bank by assets, initially said it would look to raise Rp 3 trillion ($330 million) through the issue but Mustafa last week raised the estimate to Rp 6 trillion.

On Monday, Mustafa said the ba nk would raise between Rp 6 trillion and Rp 6.6 trillion in the issue. To help it get to the Rp 6.6 trillion level, BNI might also use a “greenshoe option” to allow it to issue new shares if there was sufficient demand from investors, he said.

A “greenshoe option” gives underwriters the right to sell additional shares in an offer if demand is in excess of the original amount offered.

The rights issue will give BNI access to fresh funds and enable it to qualify for a 5 percent tax break available to companies that have at least 40 percent of their shares owned by public investors.

Mustafa said some of the proceeds would go to the state, rather than BNI, but he did not specify how much.

BNI officials could not be reached for comment.

Robby Hafil, an analyst at PT Sucorinvest Central Gani, said the government’s target of Rp 6.6 trillion was overly optimistic. Robby said BNI’s share price was only likely to increase to Rp 2,150 to Rp 2,200 this year. By selling only about 16 percent of the BNI shares, the total proceeds would not reach Rp 6.6 trillion, he said.

“Based on our projected share price, the most money that could be raised is about Rp 5.5 trillion,” he said.

It is also uncertain if the rights issue will get approval from the Finance Ministry, which has previously said it did not want the government’s bank stakes to be diluted.

However, Mustafa said last week that the ministry had agreed to approve the issue.

Because of the lengthy approval process, Robby said, it would be difficult to launch the rights issue this year. The House of Representatives must also approve the issue. “I’m pessimistic that it will happen before the end of the year,” he said.

A more realistic option for BNI to raise capital would be for the government to allow state banks to write-off bad loans, he said.

BNI’s share price fell 1.2 percent at Rp 2,050 on Monday.