BNI Cancels Bonds Issuance

PT Bank Negara Indonesia Tbk has decided to cancel the issuance of US$150 million bonds that should be early next year.
BNI Director Fero Poerbonegoro said the additional fund from rights issue, as much as IDR4.03 trillion, has increased the capital adequacy ratio so that the issuance of subordinated bonds is unnecessary.
"We have got some money from right issue so that bonds issuance is unnecessary anymore. If the market is favorable and we need the money, we may do that later," he said to me last week.
He added the bank has allocated some money from the rights issue to repay some subordinated bonds that would mature this year. The total bonds to mature this year are US$150 million.
BNI has planned to execute call option to prevent from high interest rate. "We are trying to cut interest cost."