Danamon plans to launch $330mln bonds in November

The lender to use the proceeds to bolster its long-term targets as its CAR stood at 16.4%.

The sixth largest bank by assets, Bank Danamon Indonesia might launch Rp 3 trillion (US$330 million) in bonds in the third week of November to spur loan growth to as much as 20 percent next year, the lender’s executive said Tuesday.

“The bonds have nothing to do with capitalization, but it will be used to support Danamon’s long-term targets,” chief financial officer Vera Eve Lim told reporters at a press conference on Danamon’s third-quarter financial performance.

By September of this year, Danamon’s capital adequacy ratio stood at 16.4 percent, while its loan growth reached 25 percent, surpassing its full-year target of 20 percent.

The lender had Rp 77.37 trillion ($8.65 billion) in outstanding loans up to the third quarter of this year versus the same period last year at Rp 62.15 trillion ($6.95 billion).

View the full story in the Jakarta Post.