Wednesday, March 31, 2010

CIMB Niaga raise US$200 million loan

PT Bank CIMB Niaga Tbk has two step loan commitmen from Japan Bank for International Cooperation (JBIC). CIMB Group, owner 77.24 percent share of Bank CIMB Niaga has sign memorandum of understanding with JBIC.
JBIC has plans to provide US$300 million loan to CIMB Group with tenure 7 years. CIMB Group will provide loan via subsidiary, Bank CIMB Niaga and CIMB Bank Thai.
The loan will be use to finance the small-and-medium enterprise (SME) businesses of Japanese companies cross Asean minus Singapore. CIMB Group allocated US$200 million loan for Bank CIMB Niaga.
Bank CIMB Niaga studies options to acquire bank of the leading 20 major banks as part of anorganic growth. The company plans to issue IDR3 trillion subdebt to increase capital. The subdebt issuance in quarter II is taken to increase capital and support the credit expansion target of 15 percent this year.
Subdebt has junior claim than the deposit claims and other obligations of the bank. In addition to subdebt, the company also plans to have rights issue this year.
Rights issue is done to increase the credit growth and boost up the CAR which is currently at the level of 13 percent.
The general meeting of shareholders (GMS) Bank CIMB Niaga last week has approve Hamidah Naziadin and Glenn Muhammad Surya Yusuf as the commissioners.

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