PT Bank Internasional Indonesia Tbk (”BII” or “The Bank”) today announced its intention to issue senior debt programme “Obligasi Berkelanjutan I Bank BII” and subordinated debt program “Obligasi Subordinasi Berkelanjutan I Bank BII” which are expected to be issued in tranches within two years.
Obligasi Berkelanjutan I Bank BII Tahap I Tahun 2011 with a principal amount of up to IDR 2 trillion is a part of the senior debt program general offering for Obligasi Berkelanjutan I Bank BII of up to IDR4 trillion. The Senior Debt consists of Series A and Series B. For Series A, the maturity period is 3 years and indicative coupon rate of 7.75% - 8.50% per annum and the interest shall be paid quarterly. For Series B, the tenor is 5 years with an indicative coupon rate of 8.75% - 9.50% per annum and the interest shall be paid quarterly.
Obligasi Subordinasi Berkelanjutan I Bank BII Tahap I 2011 with a principal amount of up to IDR 500 billion is part of the subordinated debt program general offering for Obligasi Subordinasi Berkelanjutan I Bank BII of up to IDR 2 trillion. The tenor of the Subordinated Bonds is 7 seven years with an indicative coupon rate of 10.00% - 10.75% per annum and the interest will be paid quarterly. Offering price is 100% of the principal amount of the Debts issued.
“ The Senior Debt and Subordinated Debt issuance will support the continuous business growth as the Bank is on the track to achieving toward its vision to be the Best Indonesia Financial Provider In The Markets We Serve,” said Rahardja Alimhamzah, Acting President Director of BII.
According to Rahardja, all proceeds from this Bond and Subdebt issuance after being deducted with all issuance expenses, will be used to increase the Bank’s earning assets in particular increasing business growth focusing on SME, Commercial, Consumer, and Corporate segments. The Subdebt will account for Tier 2 capital subject to Bank Indonesia’s approval. The Subdebt will further strengthen the Bank’s capital structure and provide long term funding.
With stronger capital structure and increasing long term funding, BII will be able to continue its growth momentum. In the first nine months 2011, the Bank recorded a 22% consolidated loan growth from Rp50.8 trillion in September 2010 to Rp61.9 trillion in September 2011. SME & Commercial loans contributed the largest growth of 26% from Rp 17.6 trillion in September 2010 to Rp 22.2 trillion in September 2011, followed by Corporate and Consumer which increased by 23% and 19% respectively compared to the corresponding period in 2010. Corporate loans accounted for 24% of total loans, while SME & Commercial and Consumer Loans contributed 36% and 40% respectively.
The Bank’s total asset as of 30 September 2011 increased 26% to Rp 90.9 trillion from Rp 72.2 trillion as of 30 September 2010. The Bank’s growth has resulted in the stronger bottom line. The Bank booked net profit of Rp555 billion for the first nine months ended 30 September 2011, a 34% increase from the Rp415 billion in the previous corresponding period ended 30 September 2010.
The Bank’s growth across the business segments was accompanied by improved asset quality. The Bank’s gross non performing loans (gross NPL) level reduced to 2.54% as of September 2011 from 3.52% as of September 2010 and net NPL improved to 1.37% from 1.97%. The improvement in asset quality was achieved mainly through the Bank’s continuous effort in strengthening its risk management and credit processing while implementing quicker loan restructuring programs and closer monitoring of existing borrowers.
The Bank is rated AAA (idn) from PT Fitch Rating Indonesia (“Fitch”) and (id)AA+ from Pemeringkat Efek Indonesia (Pefindo) for the Senior Debt Issuance, while for Subordinated debt issuance the Bank is rated AA by both Fitch and Pefindo.
BII has appointed 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 as the Joint Lead Underwritters for Senior Debt and Subordinated debt issuance.
BII and the Joint Lead Underwriters of the Senior Debt and the Subordinated Debt are planning to schedule the bookbuilding period on 8 – 18 November 2011, offering period on 6 – 8 December 2011, allotment date on 9 December 2011, distribution period on 13 December and the listing on Indonesian Stock Exchange on 14 December 2011.