PT Bank Internasional Indonesia Tbk (“BII or the Bank”) today announced that overwhelming market response to the issuance of the Bank’s senior bond and subordinated bond has led to closing the bookbuilding period 3.5 days earlier than scheduled, to 15 November 2011 from original date of 18 November 2011 The effective statement from Bapepam and LK for the Bank to carry out the public offering has been received by the Bank on 28 November 2011.
Despite this shorter bookbuilding period, the Bank has received total orders of Rp7.5 trillion for the total offering of Rp2 trillion of the senior bond “Obligasi Berkelanjutan I Bank BII Tahap I Tahun 2011” (“Senior Bonds”) and Rp500 billion of subordinated bond “Obligasi Subordinasi Berkelanjutan I Bank BII Tahap I Tahun 2011” (“Subordinated Bonds”); being 3x oversubscribed.
The Senior Bonds consists of Series A with 3 years maturity period and Series B with 5 years tenor whereby the final size is Rp440 billion at 7.75% p.a. for Series A and Rp1,560 billion at 8.75% p.a. for Series B. Final size for the 7 years Subordinated Bonds is Rp500 billion at 10%. Interest of Senior Bonds and Subordinated Bonds are to be paid quarterly.
Acting President Director BII, Rahardja Alimhamzah said ”We are pleased with the overwhelming response from the primary market for this our second visit to the market this year. This successful Bonds issuance will further strengthen our capital and improve our long term funding composition to support our increasing business growth”.
According to Rahardja, all proceeds from these Bonds issuance after deduction with all issuance expenses, will be used to increase the Bank’s earning assets to increase business growth focusing on SME, Commercial, Consumer, and Corporate segments. The Subordinated Bonds will account for Tier 2 capital subject to Bank Indonesia’s approval and will further strengthen the Bank’s capital structure.
The Senior Bonds is rated AAA (idn) from PT Fitch Rating Indonesia (“Fitch”) and (id)AA+ from Pemeringkat Efek Indonesia (“Pefindo”), while the Subordinated Bonds is rated AA by both Fitch and Pefindo.
This successful Bond offerings have been assisted by the Joint Lead Underwriters comprising of PT Bahana Securities, PT DBS Vickers Securities Indonesia, PT HSBC Securities Indonesia, PT Indo Premier Securities, PT Kim Eng Securities (subsidiary of Maybank) and PT OSK Nusadana Securities Indonesia.
The Public Offering period for these Bonds issuance will be from 29 November to 1 December 2011 with allotment scheduled on 2 December 2011. The distribution/issuance date will be on 6 December 2011 and listing on the Indonesian Stock Exchange will be on 7 December 2011.