JAKARTA - PT Bank Bukopin Tbk (BBKP) will postpone the issuance of Rp 3 trillion bonds, initially planned in the first semester of 2019, to the fourth quarter of 2019. The company will make use of its existing capital and retained earnings from 2018 to support credit expansion.
Bank Bukopin CEO Eko Rachmansyah Gindo said that currently the company’s capital adequacy ratio (CAR) is still in a safe position at 13.29%. Thus, the company is still able to do business without having to seek new financing sources.
“We’re not in a rush to launch this corporate action. We will realise it in the second semester, or in the fourth quarter to be exact,” said Mr Gindo after the company’s Annual General Meeting of Shareholders (AGM) as quoted by Bisnis.com, Wednesday (22/5).
The company, he added, has obtained shareholder approval to use its 2018 net profit as retained earnings too strengthen its capital.
Previously, Bank Bukopin planned to issue up to Rp 3 trillion worth of bonds which consist of subdebt and senior bonds. The issuance value of each bond is estimated at Rp 1 trillion to Rp 1.5 trillion. (MS)