CIMB Niaga to sell $162mln worth of bonds

Lender will use the 7-year, AA- rated subordinated bonds to fund car and micro loans.

Indonesian bank CIMB Niaga, a unit of Malaysia's CIMB Group, will offer 1.5 trillion rupiah ($162.3 million) of subordinated bonds, it said in a statement on Tuesday.

The bank will use 93 percent of the funds to finance its car loan programme and the rest for micro loans, according to a report in Reuters.

The 7-year subordinated bonds have a rating of AA- with a stable outlook from Fitch Ratings Indonesia.

PT Bahana Securities, PT CIMB Securities Indonesia and PT Mandiri Sekuritas have been appointed as underwriters for the subordinated bond issue.