JAKARTA, Indonesia, July 8 (Reuters) – A senior government official said on Thursday that Bank Negara Indonesia (BBNI.JK)(BNI) plans to generate funds by selling at least $500 million in perpetual bonds this year and launching an 11.7 trillion rupiah ($805.79 million) rights offering next year. According to a document presented at a parliament hearing by Kartika Wirjoatmodjo, a deputy minister at the State-Owned Enterprises Ministry (SOEs), the state-run lender is planning a bond issuance in the third quarter with an estimated coupon rate of 4 percent to 5 percent per year and a maturity of up to 5 1/2 years. Kartika also informed MPs that the lender wants to issue rights in the first half of 2022, with the government intending to keep its controlling ownership of 55 percent to 57 percent by injecting 7 trillion rupiah. The funds will be utilized to help the bank maintain its capital. Kartika said that the lender’s assets and loan growth had not been supported by adequate revenues in recent years. Its capital adequacy ratio (CAR) has fallen to as low as 16%. “We expect (BNI’s) CAR can revert to approximately 19 percent as a systemic bank,” Kartika added. In the January-March period, BNI’s profits fell 43.9 percent year on year to 2.4 trillion rupiah. Another state institution, Bank Tabungan Negara (BBTN.JK), is planning to raise capital through a rights offering worth up to 5 trillion rupiah, according to Kartika. He didn’t provide a timetable. 1 rupiah = 14,520.0000 rupiah Tabita Diela contributed reporting, and Fransiska Nangoy and Ed Davies edited the piece. The Thomson Reuters Trust Principles are our standards./n
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