Indonesia’s biggest lender considers $1 billion rights issue, sources say
Published 07 Jan,2021 via Bloomberg Markets - PT Bank Rakyat Indonesia, the country’s largest lender by assets, is exploring a plan to raise at least $1 billion through a rights issue, according to people with knowledge of the matter.
The state-owned bank is working with advisers on the potential fundraising, which could take place as soon as the first half of this year, said one of the people, who asked not to be identified as the information is private. The lender plans to strengthen its capital base to prepare for potential acquisitions with the proceeds, the people said.
Deliberations are ongoing and Bank Rakyat could still adjust the fundraising structure or even decide not to proceed, the people said. A representative for Bank Rakyat declined to comment on the fundraising plan, adding the bank’s focus is to maintain and improve performance and to play an active role in the national economy recovery program.
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Elffie Chew, Manuel Baigorri and Fathiya Dahrul