BIS raises $ 6.7 billion from rights issue

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Jakarta. The state-controlled Bank Rakyat Indonesia, the country’s largest lender by assets, raised $ 6.73 billion through a rights offering this month, ranking it this year as the largest in the world in terms of assets. Southeast Asia and one of the highest in the world.

The issuance of rights is essential to support the government’s goal of establishing a state micro-lender with the bank, commonly referred to as a BIS.

“The great interest in the issuance of BRI rights reflects the confidence of shareholders in the vision built by the government through the BIS to focus more on financial penetration by securing new sources of growth in the microcredit segment, this which ultimately creates added value for all shareholders ”, Sunarso, said the CEO of the BIS.

“The objective of the synergy of BRI, Pegadaian and PNM is to make funding accessible to as many people as possible at the lowest possible cost,” he said.

The lender sold around 28 billion shares as part of the rights offering, raising a total of 96.5 trillion rupees ($ 6.73 billion). The government transferred Rs.54.7 trillion in shares of two state-owned finance companies, the Pegadaian pawnbroker chain and the Permodalan Nasional Madani (PNM) microcredit company, to the BIS as part of the deal.

The lender has managed to raise Rp 13.3 trillion from local investors and Rp 27.9 trillion from foreign shareholders.

Hans Kwee, analyst and director of Ekuator Swarna Investama, said the strong foreign interest in CSEC rights issuance is in line with promising business prospects, especially after the synergy with Pegadaian and PNM.

“With this collaboration, BIS can reduce competition and expand its lending, which will ultimately translate into higher profits,” he told The Globe’s sister publication, Investor Daily.

In the rights offering prospectus, BIS said its total assets would increase 7.3% to 1.55 trillion rupees from 1,411 trillion rupees before the transaction and that the loan would increase 9% to 997,000. billion rupees against 914 trillion rupees.

BRI’s rights offer is the largest in Southeast Asia, overtaking Singapore Airlines’ mandatory convertible bond offer in June which raised $ 6.2 billion.


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