SUKUK - Bank Sulsel to Issue Rp500 Billion Bonds Next Month

Theindonesiatoday.com - Regional development bank PT Bank Pembangunan Daerah Sulawesi Selatan (Bank Sulsel) plans to issue bonds worth Rp500 billion in May 2011, of which syariah bond (Sukuk) amounts Rp100 billion.

Ellong Tjandra, Bank Sulsel's president director, said the sukuk is the first issue while bonds will be issued in two series, 3 and 5 years period. (full story)

He the bonds' proceeds will be used for funding loan expansion, 70% is allocated to consumer loans and 30% for productive financing.

PT Andalan Artha Advisindo (AAA) Sekuritas and PT Danareksa Sekuritas act as underwriters for the bond.

Andri Rukminto, AAA Securities' president director, said series A bonds (3 years tenor) offer coupon of 9.15-9.65% while series B bonds and Sukuk offer coupon or yield of 10-10.5%.

The pre-offering of the bonds started on Friday (April 15) until April 26 while the offering is set for May 3-9, 2011. Listing at stock exchange is scheduled for May13, 2011.

Ellong said Bank Sulsel disbursed loan of Rp4.2 trillion as of March, 2011. The bank targets 20% loan growth for this year. ( hans@theindonesiatoday.com)

Source : http://theindonesiatoday.com/bonds-headlines/9339-bank-sulsel-to-issue-rp500-billion-bonds-next-month.html April 16, 2011