Jakarta. Bank KEB Hana Indonesia, a subsidiary of South Korea's Hana Financial Group, said it plans to raise $120 million in subordinated bonds next year to beef up its capital.
The lender plans to sell rupiah- and US dollar-denominated bonds, worth Rp 800 billion ($60 million) and $50 million respectively, on Dec. 15 and Dec. 16, the lender said on Monday (22/11).
The later would be the first US-dollar denominated bonds offered publicly in the Indonesian market, according to Yuniar Restanto, the associate director investment banking at Indo Premier Securities, one of the underwriters for the issuance.
Bank Permata, a unit of car and commodities conglomerate Astra International, did raise $100 million from dollar-denominated bonds earlier in 2009, but it was done in a private placement.
The other underwriters for KEB Hana Indonesia's bond issuance are Danareksa Sekuritas and Bahana Securities.
KEB Hana Indonesia is a merger between Hana Bank and a local unit of the Korean Exchange Bank formed in 2014 to expand its consumer banking business.
The lender now has Rp 34 trillion in assets, up 21 percent so far this year thanks to rapid loan expansion, data from Financial Services Authority (OJK) showed.
But, KEB Hana Indonesia's capital adequacy ratio — a measure of the lender's capital against its risk-weighted assets — fell to 17 percent at the end of September from 21 percent a year ago, the OJK data also showed.