The bank had submitted a plan to issue preemptive rights to the Capital Market and Financial Institutions Supervisory Board (Bapepam-LK) and the Indonesia Stock Exchange (BEI), Bank Danamon President Director Henry Ho said in a press statement issued on Friday.
He said the bank would also announce details of the planned rights issue to shareholders after submitting a statement of registration to Bapepam-LK in the next few weeks.
As per March 31, 2011 the bank`s consolidated and stand alone capital adequacy ratios (CAR) reached 14.7 percent and 12.1 percent respectively, well above the central bank-set minimum ratio of 8 percent.
The plan to conduct the rights issue was intended to strengthen the bank`s capital, support businesses and credit growth, and forge relations with customers, he said.
"We are convinced of Indonesia`s economic potential and banking sector. Therefore, the rights issue is designed to strengthen capital and speed up business expansion," he said.
To conduct the rights issue, the bank had appointed Citi and Deutsche Bank as standby purchasers and PT Danareksa Sekuritas as an arranger,Danamon`s chief financial officer Vera Eve Lim.
(SYS/S012/F001)
Editor: Suryanto
Copyright © ANTARA 2011
