Bank Negara Indonesia Sets Dividend, Readies for Debt Sale

By webadmin on 09:25 pm Apr 18, 2012
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Jakarta Globe

State-owned Bank Negara Indonesia, the nation’s fourth-largest lender by assets, said its shareholders on Wednesday agreed to pay out 20 percent of last year’s net profit as a dividend.

That would amount to Rp 1.16 trillion ($126 million) in dividends, Gatot M. Suwondo, the lender’s president director, said after the meeting in Jakarta.

BNI’s net income rose to Rp 5.8 trillion last year from Rp 4.1 trillion in 2010, while its net interest income climbed to Rp 13.4 trillion from Rp 11.7 trillion.

Many banks in the country posted strong profit growth last year amid rising loan demand by consumers and corporations.

The Jakarta-based lender has also received approval from the central bank for its planned $500 million bond sale in the second quarter, Gatot said. The dollar-denominated bonds will mature in five years, he added, and the bank will use proceeds from the debt sale to boost lending.

The sale comes as companies rush to capitalize on Indonesia’s international credit rating upgrade. In the past four months, Moody’s Investors Service and Fitch Ratings have raised the country’s sovereign debt rating to investment grade.

Fitch has given a BBB- rating to BNI’s proposed dollar-denominated bonds, the rating agency said on Tuesday.

BNI is 60 percent owned by the government.

Its shares rose 1.3 percent to Rp 3,975 on the Indonesia Stock Exchange on Wednesday.

Additional reporting from Antara