Cimb Niaga offering its first bonds worth Rp1.5 tln

Cimb Niaga offering its first bonds worth Rp1.5 tln

President Director Bank CIMB Niaga, Arwin Rasyid (FOTO ANTARA/Ujang Zaelani)

Jakarta (ANTARA News) - Bank CIMB Niaga is issuing its 2011 first fixed rate bonds worth Rp1.5 trillion to increase its credit expansion.

Part of proceeds from the issuance of the bonds would also be used to improve tenor mismatch between funding and financing in line with the bank`s long term business plan, CIMB Niaga Tbk President Director Arwin Rasyid said in a press statement on Thursday.

The bonds were divided into series A and series B issued in scriptless form, he said.

The bonds were offered at 100 percent of the principal amount and would mature in three years and five years since the date of issuance, he said.

The three-year bonds were issued at an indicative interest rate of 6.75-7.75 percent per year and the five-year bonds at an indicative interest rate of 7.75-8.75 percent per year with interest payments to be made every quarter, he said.

Credit rating agency PT Pemeringkat Efek Indonesia (Pefindo) has assigned its idAAA (triple A) rating for the bonds.

Acting as bond issue underwriter was PT CIMB Securities Indonesia with PT Bank Permata Tbk. as trustee agent, he said.

The bonds are on sale from November 23 to December 6, 2011 and will be listed at the Indonesia Stock Exchange on December 27, 2011.

The bank in the nine months through September posted an unaudited consolidated profit of Rp2.38 trillion, a 33 percent increase compared to the same period last year when the figure was Rp1.79 trillion.

The profit hike was particularly fueled by operating income which rose Rp1.15 trillion to Rp7.65 trillion in September 2011 from Rp6.50 trillion in September 2010.

In terms of assets, the bank also has successfully maintained its position as the country`s fifth largest bank with total assets of Rp159.15 trillion as per September 2011, up 23 percent from Rp129.14 trillion in the same period last year.