The subordinated bonds were not guaranteed with special collateral, but with BII`s assets consisting of movable and non- movable goods.
Jakarta (ANTARA News) - Bank International Indonesia (BII) is offering the first subordinated bonds to the public for a seven year term as of the date of issue at the fixed interest of 10-11 percent per year.

BII Executive Director Ridha DM Wirakusumahsaid said here on Thursday the subordinated bonds were not guaranteed with special collateral, but with BII`s assets consisting of movable and non- movable goods.

The proceeds of the subordinated bonds sale would be used to increase the bank`s productive assets in order to develop its business segment focused on Small and Micro Enterprises (SMEs), commercial and consumer banking, he said.

Asked about the Rp600 billion subordinated bonds, Ridha said BII should be careful in taking measures in order to avoid problems.

If demand for the bonds reaches more than 600 billion it would be discussed first with the BII management, he said.

He said the loan will be disbursed to SMEs, consumers and corporates, with slightly better chances than last year which increased 20 percent respectively.

"We need to be careful in lending the fund to the public for any negative impact in the future and expected to have a small effect," he said.

Credit disbursement to SMEs and commercials has reached Rp1 trillion or 50 percent respectively, because the market is growing quite well, he said.

Therefore the bond offering mainly occurred in institutions and some individuals, but if the individual`s demand is expanding, then BII will provide additional demand, he said.

Acting as a guarantor of the Issuance of Subordinated Bonds are PT Bahana Securities, PT Indopremier Securities, and PT Bank Mandiri Securties.

The offering period would be May 10-12, 2011 and the allotment on May 13, 2011 and listed on the Indonesia Stock Exchange on May 18, 2011. It would also be listed at the Indonesian Stock Exchange (IDX) on May 18, 2011.(*)

Editor: Heru Purwanto
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