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PT Bank -BII Plans to Issue Shelf Registration Subordinated Debt II and Shelf Registration Sukuk Mudharabah

June 20, 2014



ENP Newswire - 20 June 2014

Release date- 19062014 - BII Plans to Issue Shelf Registration Subordinated Debt II and Shelf Registration Sukuk Mudharabah.

PT Bank Internasional Indonesia Tbk ('BII' or 'the Bank') today announced its intention to issue 'Shelf Registration Subordinated Debt II Bank BII ' or 'Obligasi Subordinasi Berkelanjutan II Bank BII' and 'Shelf Registration Sukuk Mudharabah I Bank BII or 'Sukuk Mudharabah Berkelanjutan I Bank BII ' which will be issued in tranches within two years through public offering.

The total amount of overall Shelf Registration Subordinated Debt II Bank BII 2014 ('Subordinated Debt') will amount up to Rp3 trillion, and for the first tranche the Bank will issue Rp1.5 trillion. Meanwhile, the total amount of Shelf Registration Sukuk Mudharabah I Bank BII 2014 ('Sukuk Mudharabah') will be up to Rp1 trillion with the first tranche issuance amounting to Rp300 billion.

This Subordinated Debt will be issued script-less with a seven-year maturity period starting from date of issuance, having an indicative coupon fixed rateat the range of 10.75% - 11.75% per annum and offered during the bookbuilding period.

The Sukuk Mudharabah will have a three-year maturity period with profit sharing mechanism that will be calculated based on multiplication of Sukuk Mudharabah Holders' Profit Sharing Ratio and Shared Revenues. Indicative equivalent rate of the profit sharing Sukuk Mudharabah will be offered at the range of 9%-10% per annum. This calculation will be based on the information of profit sharing calculation derived from the quarterly financial results (unaudited) which will be submitted to the Trustee.

'The issuance of Shelf Registration Subordinated Debt II Bank BII 2014 tranche 1 and Sukuk Mudharabah 1 2014 will further strengthen our capital structure and will also improve our long term funding profile to support our business growth going forward,' said Finance Director of BII, Thila Nadason.

'The Sukuk issuance is part of our commitment to actively be part in developing the Islamic finance in Indonesia. It is also the largest Sukuk ever issued by any financial institutions in Indonesia,' added Thila.

According to Thila, proceeds from this Subordinated Debt and Sukuk Mudharabah issuance after deduction of all issuance expenses, will be used to increase the Bank's earning assets to improve business growth of the Bank, in particular to increase loan growth and Shariah financing growth. In accordance with regulation PBI no. 15/12/PBI/2013, this Subdebt will be accounted for Tier 2 capital.

With a stronger capital structure and improved long term funding, BII will be able to continue its growth momentum. In 2013, the Bank recorded a 26% loan growth reaching Rp102 trillion as of December 2013 from Rp80.9 trillion in December 2012. The Bank recorded strong Profit After Tax and Minority Interests (PATAMI) of Rp1.55 trillion for the financial year ended 31 December 2013, or up 28% from Rp1.2 trillion in the previous corresponding period. The Bank's Profit Before Tax grew 29% to Rp2.2 trillion in December 2013 from Rp1.7 trillion in the previous year.

The improved performance for 2013 was achieved on the back of solid growth across the Bank's core businesses, strong growth in deposits, improved asset quality including at its subsidiaries, as well as continuing overall operational improvements.

The Bank has received an idAA+ rating from PT Pemeringkat Efek Indonesia (PEFINDO) and AA(idn) rating from Fitch Ratings Indonesia (Fitch) for this Subordinated Debt, while for the Sukuk Mudharabah, Pefindo has assigned idAAA(sy) and Fitch has rated it AAA(idn)(sy).

BII has appointed PT HSBC Securities Indonesia, PT Indo Premier Securities, PT Mandiri Sekuritas, and PT Maybank Kim Eng Securities (subsidiary of Maybank) to be the Joint Lead Underwritters for this Subordinated Debt and Sukuk Mudharabah issuance.

The bookbuilding period for Subordinated Debt and Sukuk Mudharabah is scheduled from 19 to 25 June 2014, offering period from 2 to 3 July 2014, allotment date on 4 July 2014, distribution period on 8 July and listing on Indonesian Stock Exchange on 10 July 2014.

'We would like to express our appreciation to all involved parties in assisting us and especially to the capital market authority in continuing to provide positive support and guidance for local companies and markets,' concluded Thila.

For further information pls contact:

Esti Nugraheni, Head of Corporate Communications, telp. +6221 29228888, email: CCommunications@bankbii.com


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Source: ENP Newswire


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