JAKARTA, March 22 (Reuters) - Indonesia's fourth-largest lender BNI plans to raise up to $720 million in a rights issue, a minister said on Monday, and the government will sell a 16 percent stake, worth about $560 million at current market prices.
State Enterprises Minister Mustafa Abubakar said PT Bank Negara Indonesia Tbk (BNI), aims to raise up to 6.6 trillion rupiah ($719.7 million) in a rights issue this year. He added that the government expected to sell a 16.36 percent stake in the bank this year.
'We expect to get it done this year. It is expected at between 6-6.6 trillion rupiah,' the minister told reporters.
He said the government currently owns a 76.4 percent stake in the bank.
Indonesia's largest lender, Bank Mandiri, is also expected to hold a rights issue this year to strengthen its capital base and increase lending.
The central bank has said that it wants the country's commercial banks to boost lending this year to stimulate growth in Southeast Asia's biggest economy.
BNI's shares ended the morning session down 1.2 percent at 2,050 rupiah, while the index was down 0.3 percent.
(Reporting by Dicky Kristanto and Adriana Nina Kusuma; Writing by Gde Anugrah Arka; Editing by Sara Webb)
((ga.arka@thomsonreuters.com; Reuters Messaging: ga.arka.reuters.com@reuters.net; +62 21 384 6364 ext 911)) Keywords: BNI INDONESIA/ (If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
State Enterprises Minister Mustafa Abubakar said PT Bank Negara Indonesia Tbk (BNI), aims to raise up to 6.6 trillion rupiah ($719.7 million) in a rights issue this year. He added that the government expected to sell a 16.36 percent stake in the bank this year.
'We expect to get it done this year. It is expected at between 6-6.6 trillion rupiah,' the minister told reporters.
He said the government currently owns a 76.4 percent stake in the bank.
Indonesia's largest lender, Bank Mandiri, is also expected to hold a rights issue this year to strengthen its capital base and increase lending.
The central bank has said that it wants the country's commercial banks to boost lending this year to stimulate growth in Southeast Asia's biggest economy.
BNI's shares ended the morning session down 1.2 percent at 2,050 rupiah, while the index was down 0.3 percent.
(Reporting by Dicky Kristanto and Adriana Nina Kusuma; Writing by Gde Anugrah Arka; Editing by Sara Webb)
((ga.arka@thomsonreuters.com; Reuters Messaging: ga.arka.reuters.com@reuters.net; +62 21 384 6364 ext 911)) Keywords: BNI INDONESIA/ (If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
