Banking Holds Rights Issue Again to Strengthen Core Capital


Several banks in Indonesia have conducted rights issues again this year. This step was taken by these banks to increase their core capital.

It was recorded that three bank issuers conducted a rights issue with a total issuance of Rp 3.04 trillion. This data is based on OJK capital market statistics for the first week of March 2022.

They are PT Bank Amar Indonesia Tbk. (AMAR) with an emission value of IDR 1 trillion, PT Bank Ganesha Tbk. (BGTG) amounting to Rp1.12 trillion, and most recently PT Bank Pembangunan Daerah Jawa Barat and Banten Tbk. (BJBR) of Rp. 925 billion.

The rights issue by BJBR was successful and received great attention from the public. This is because the issuer codenamed BJBR has oversubscribed or the total shares ordered by investors exceed those offered, which is 100.48 percent.

This value comes from local government and public shareholders. With the oversubscribe, BJBR managed to pocket funds of Rp 924.99 billion, according to the prospectus released by the company on Wednesday (23/2/2022).

In this corporate action, Bank BJB offered a maximum of 682.65 million Series B ordinary shares with a nominal value of Rp250 per share. Meanwhile, the exercise price in the action is set at Rp1,355 per share.

Apart from BJBR, other banking issuers also participated in this year’s rights issue. PT Bank Neo Commerce Tbk. (BBYB) will again carry out a limited public offering to strengthen core capital, as well as support business development in 2022.

BBYB will offer as many as 5 billion new shares in the name with a nominal value of IDR 100 per share. The action was also approved at the Extraordinary General Meeting of Shareholders (EGMS) on May 28, 2021. The company targets to have an effective date of April 28, 2022.

Separately, the Director of PT Bank Oke Indonesia Tbk. (DNAR) Efdinal Alamsyah also revealed that the company plans to conduct a rights issue of IDR 500 billion in the fourth quarter of 2022. This action aims to strengthen the company’s capital structure and business expansion.

“The process starts in the third quarter because we will use the July 2022 financial report, for the licensing process from the OJK usually, but the realization of funds comes in in the fourth quarter like last year,” said Efdinal, quoted from Bisnis, Wednesday (23/3/2022).

By holding a rights issue, banks will be able to obtain sources of funding that can be used to change business strategy, strengthen core capital, and digitalize banking.

Moreover, the rights issue will also trigger banks to increase credit growth.