PT Bank Internasional Indonesia Tbk said it posted a 2009 net loss of IDR40.97 billion compared with a restated profit of IDR468.7 billion a year earlier.
BII net interest income in 2009 rose to IDR 3.1 trillion rupiah from 2.8 trillion rupiah in 2008, the management said in a statement on the Indonesia Stock Exchange today.
BII has studied subdebt issuance worth US$200-250 million in 2010. On April 28 next year BII will pay call option of matured subdebt worth US$150 million.
Subdebt bond has become alternative among banks to boost up the CAR. Half of the bond issuance could be used for the entrance to second tier so the CAR of a bank is increasing.
Subdebt bonds are commonly issued with 10 years tenure but with buy option in fifth year. When the option is not materialized, the coupon could rise 10 percent so the issuer tends to use their rights.
Subdebt bonds are commonly issued with 10 years tenure but with buy option in fifth year. When the option is not materialized, the coupon could rise 10 percent so the issuer tends to use their rights.
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