NISP Issue IDR300-400 Billion Bonds

PT Bank NISP Tbk is likely to issue IDR 300-400 billion bonds and some new shares this year in a bid to strengthen its capital.

My source said that the bank may issue IDR300-400 billion and now still invite local and international security companies to file the proposal to become the underwriters.

The capital adequacy ratio (CAR) of the bank is still sufficient at 17.13% even though it has been lower than 19.95% of last year. The bank, has planned to search for new capital to maintain the capital adequacy ratio of 17% at the end of this year.

In 2006 the bank registered the net profit of IDR237 billion, an increase of 16% from that in 2005. the bank need the investment of IDR250 billion to open up 90 new branch offices and to provide 150 units of new ATMs. The bank's loan should grow by 30% to IDR5trillion - IDR6 trillion.

Some banks have planned to issue some bonds. PT Bank Tabungan Pensiunan Nasional has planned to issue IDR540 billion bonds next April, Bank Niaga as much as IDR1.5 trillion on the first half of the year, and PT Bank Tabungan Negara Tbk (BTN) has planned to issue IDR1, trillion. PT Bank Mega Tbk has planned to issue IDR1 trillion bonds in June 2007, Bank Nagari IDR500 billion, PT Bank Victoria Tbk IDR200 billion.