The subordinated bonds would be the second such bonds issued to finance the bank`s credit expansion business, Bank Nagari President Director Suryadi Asmi said in a public expose here on Wednesday.
"Our CAR (capital adequacy ratio) in the first quarter of 2012 stood at 13.2 percent. With the issuance of the subordinated bonds, we predict it will increase to 15.5 percent at the end of 2012 as shareholders will also increase the bank`s capital by Rp105 billion later this year," he said.
He said the bank was determined to channel more credits to raise credit growth by 22 percent to Rp11.1 trillion. The figure represented a 29 percent decline compared to last year.
"The amount of credits will not be as large as that of last year because we are focusing on strengthening capital," he said.
He said the bank had so far channeled 34 percent of its credits to the productive sector and 66 percent to the consumption sector. The ratio would be changed to 50 percent of the credits for the consumption sector and 50 percent for the productive sector.
He predicted the bank`s assets would increase to Rp14.9 trillion at the end of this year from Rp12.9 trillion at the end of last year.
The seven-year subordinated bonds will be issued at a coupon of 9.15-10.5 percent.
Commenting on the bank`s plan to conduct an initial public offering (IPO) of its shares, he said the management of the bank still had to discuss the plan with shareholders.(*)
Editor: Heru Purwanto
Copyright © ANTARA 2012
