Monday, July 25, 2011

Danamon rights issue IDR5 trilion

PT Bank Danamon Indonesia Tbk, plans to raise as much as IDR5 trillion in a rights offer to fund loan growth and strengthen its capital position.


Bank Danamon will sell about 1.2 billion shares at IDR4,100 to IDR4,800 rupiah each, the company said in a statement published in Bisnis Indonesia newspaper today.


Existing investors will be able to buy as many as 144 shares for every 1,000 they hold, the statement said.


Asia Financial Indonesia, Temasek's wholly-owned unit, has committed to take up its rights entitlement, it said. Asia Financial entitlement is 67.4 percent share of Bank Danamon. The company reported this month that its first-half net income rose 3 percent to 1.47 trillion rupiah from a year earlier, as lending jumped 31 percent in the same period.


Bank Danamon's Tier 1 capital ratio will rise to 17.9 percent after the stock sale from 13.6 percent, the lender said. Citigroup Inc. and Deutsche Bank AG are managing the transaction.

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