REPUBLIKA.CO.ID, JAKARTA - Private lender PT Bank UOB Indonesia issued subordinated bonds worth one trillion IDR used for company's business development, particularly in credit provision. This is the first bonds in Indonesia using Basel III framework.
Based on new regulation, supplementary bank capital (Tier 2 capital) issued by a bank has some new features, such as conversion of supplementary capital to common stock or write down scheme.
"This bond is an important step to boost the proactive capital management plan and improving company's capital under Basel III framework," President Director of Bank UOB Indonesia, Armand B Arief on Wednesday.
The subordinate bonds have tenor of seven years with rating of AA from Fitch Ratings. UOB Indonesia appointed five underwriters, namely PT Mandiri Sekuritas, PT Indo Premier Securities, PT Danareksa Sekuritas, PT Trimegah Securities and PT UOB Kay Hian Securities. The bookbuilding is conducted on April 17 to May 7, 2014, while the public offering on May 21 and listing on Indonesia's Stock Exchange (IDX) will be carried out on May 30, 2014.
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