TRADE FINANCE | Tony Chua, Indonesia

Bank Danamon earns $564mn in rights issue

Foreign institutions constitute the majority of buyers of the rights whose proceeds are to be used for the lender’s expansion.

Bank Danamon, Indonesia's sixth-largest lender, said on Friday it has successfully raised 4.998 trillion rupiah ($564.4 million) in a rights issue which it will use to expand into micro, small and medium-sized businesses.

"Most of the buyers are foreign institutions," Vera Eve Lim, the bank's chief financial officer, told Reuters on Friday.

"The funds from the rights issue will help our loan growth expansion over the next three years," Lim said, adding the firm's capital adequacy ratio will be 18.3 percent, well above the central bank's minimum requirement of 8 percent.

Lim also forecast Danamon's loan growth will be at between 22 percent and 25 percent this year.

View the full story in Reuters.

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