Thursday, December 23, 2010

Bank Nagari offer bond coupon 9.5%-11%

PT Bank Nagari, an Indonesian bank based in West Sumatra, offer bond coupon at 9.5%-11%. The company was picks PT Trimegah Securities as a underwriter IDR700 billion bonds. The bank also issue sukuk IDR100 billion, subordinated bond IDR200 billion, and senior debt IDR500 billion.
Bank Nagari plans to use the proceeds of bonds and IPO for supporting the company's loan expansion in 2011.
Subordination bond serves as an alternative for bank to boost up capital adequacy CAR. Half of the fund raked from the bond issuance will be allotted for the bank second tier so as to mount the CAR.

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