bank-danamon-outlines-335-million-rights-issue

Bank Danamon outlines $335 million rights issue

The Indonesian bank, which is two-thirds owned by Temasek, offers new shares at a 55.6% discount to yesterday's close, although the deal won't open until early April.

Indonesia's Bank Danamon yesterday announced details of a Rp4 trillion $335 million rights issue that had been widely anticipated by the market, joining a series of Asian banks seeking to add fresh equity capital to their balance sheets.

Danamon, which ranks as Indonesia's fifth largest commercial bank in terms of assets, is already one of the most well-capitalised banks in Asia with a capital adequacy ratio of 15.4% and a tier-1 ratio of 13.8%, but the bank said it is keen to strengthen this further to enhance its lending capacity within its key focus areas of microfinance and small- and medium-sized enterprises.

In this financially turbulent time, it is prudent to be well capitalised, Bank...

¬ Haymarket Media Limited. All rights reserved.

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222

Article limit is reached.

Hello! You have used up all of your free articles on FinanceAsia.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences. To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222