Bukopin eyes loans through share sales

Bank Bukopin plans to raise up to US$ 112 million through a rights issue to finance credit expansion. The sale could potentially see the bank change hands.

“God willing, we will launch it in the first quarter,” said Glen Glenardi, the bank’s president director. “We have standby buyers whose strategic goals are the same as ours.”
According to Jakarta Globe, Bukopin is targeting loan growth of 15 percent to 25 percent next year. It has forecast a 20 percent gain in credit for this year.

To pave the way to more lending, the rights issue would boost the bank capital adequacy ratio, a measure of a bank’s ability to manage risk, to 14 percent next year from 12.2 as of September, he said.

Bukopin had won the government’s approval in August to sell up to 51 percent of its equity with a target of raising US$89 million this year before the share sale was delayed.

Bukopin has been a target of acquisition by two state companies: pension fund Jaminan Sosial Tenaga Kerja and Bank Rakyat Indonesia, the nation’s second-largest lender by market value.