TEMPO.CO, Jakarta-Bank MNC Internasional (IDX: BABP) will be holding its fifth rights offering. An extraordinary general meeting of the bank's shareholders approved the release of 5.31 billion shares worth Rp531.1 billion to the public.
President director Benny Purnomo, said the bank decides of a rights issuance to increase capital.
"As the banking industry becomes more and more competitive, we feel there are steps that need to be taken," Benny said in Jakarta last Friday.
The shares will be issued with an opening price of Rp100 per unit. The rights issuance plan has been included in MNC Bank's business plan for 2016. In May, this policy was taken in a bid to maintain the bank's capital ratio of 18-19 percent until the end of the year.
Benny is confident that the rights offering proceeds will be able to strengthen the company's capital structure, especially to increase productive assets. The company will also use the proceeds for credit disbursement, fund placements, as well as to purchase securities. "We will still ensure to maintain the minimum capital requirement," he said.
MNC bank also plans to issue its series III warrants for a value of Rp531.1 billion, from which Benny hopes to reap more than Rp1 trillion. From the two corporate acts, MNC Bank hopes to push its core capital up to Rp2.7 trillion.
From 2010 to 2014, MNC Bank posted losses. But the tables were turned at the end of 2015 when the bank netted a profit of Rp8.2 billion.
PUTRI ADITYOWATI | GHOIDA RAHMAH