PT Bank Negara Indonesia (BNI) plans to issue senior debt securities denominated in United States dollars worth US$500 million or around IDR 7.94 trillion.
The issuance of debt securities is part of the issuance of the Euro Medium Term Note program which was established by the company on May 6 2020 as updated on March 22 2021 and March 26 2024 (EMTN Program). Based on the EMTN Program, the company can issue debt securities in stages with a principal amount of up to US$ 2 billion.
BNI Finance Director Novita Widya Anggraini said the aim of the issuance was to diversify funding sources and expand credit in foreign currency.
“As a bank that is active in providing rupiah and foreign currency credit, this global bond issuance will be used to expand foreign currency assets with optimal returns which will have a positive impact on the Company’s financial performance, while increasing the Company’s capacity to support the development of Indonesian business from and to abroad,” said Novita in a written statement, Thursday (28/3).
This bond issuance will be listed on the Singapore Exchange Securities Trading. The Company has appointed BNI Securities, Citigroup, and JP Morgan as Joint Lead Managers. Meanwhile, the S&P and Fitch rating agencies have given Baa2, BBB and BBB- ratings to BNI as the issuer.
Previously, BNI had successfully issued various global and local bonds, such as the USD1 billion global CD program for BNI New York Agency in 2020 and the USD500 million T2 subordinated notes as the first issuance under the EMTN Program in 2021.
Apart from that, BNI also succeeded in issuing the 2021 Additional Tier-1 (AT1) capital instrument amounting to USD 600 million, which is the first public AT1 transaction in Indonesia.
“We are confident that the issuance of global bonds will be welcomed by international investors and will further strengthen BNI’s position as a global bank from Indonesia,” concluded Novita. (RO/Z-11)
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