INDONESIA - CAPITAL MARKETS - BSM to sell IDR500 billion subdebt

JAKARTA: PT Bank Syariah Mandiri will sell IDR500 billion worth of subordinated sharia bond through several phases in a process it hopes to finalize by next year.

The corporate action aims to boost capital adequacy ratio once eroded due to financing expansion. Bank Syariah Mandiri (BSM) President Director Yusla Fauzi said the first phase of the debt issue would be sold later this year. (source)

INDONESIA - CAPITAL MARKETS - Bank Muamalat Indonesia to sell $50m of Islamic notes

PT Bank Muamalat Indonesia, the nation’s oldest shariah-compliant lender, said it will offer $50 million of dollar-denominated Shariah-compliant bonds in the fourth quarter of this year.

“The medium-term note sale will be a bilateral arrangement with a foreign bank in Malaysia,” Chief Financial Officer Hendiarto said at a press briefing in Jakarta today. The sukuk will have a tenor of not more than five years, he said in May. (source)

INDONESIA - BANKING - Bank Muamalat to issue IDR800 billion subdebt

JAKARTA: PT Bank Muamalat Indonesia Tbk is planning to issue minimum IDR800 billion subdebt sharia bond in 2012 to strengthen its capital adequacy ratio.

With the issuance of the subdebt, Muamalat CAR might increase by 4%, Director of Finance and Operational Hendiarto told Bisnis. The bank CAR position in the first half was 11.57%. (source)