BNI NEWS

Jakarta, 7 June 2017 --- PT Bank Negara Indonesia (Persero) Tbk (BNI) will issue debt bond in the form of debenture as the effort to diversify the Company’s funding source. This step becomes a part of the Sustainable Debenture Issuance program Phase 1 of BNI 2017 with principal amount of the most Rp 10 trillion, performed gradually. In the Phase I, this Issuer coded BBNI will issue bond in maximum value of Rp 3 trillion, with 5 (five) years.

 

Issuance of the Sustainability Debenture Issuance Phase I of BNI is conveyed to public in the Public Expose of Rupiah Debenture Sustainability General Offering at The Ritz Carlton Jakarta, Wednesday, 7 June 2017. The BNI funding strategy was presented by the Vice President Director of BNI, Herry Sidharta.

 

Herry conveyed, the Debenture General Offering proceed fund, after reduced by Emission costs, entirely will be used by BNI for credit expansion for business development, In the event there is Debenture General Offering proceed fund has not been realized yet, the Company will place such fund in a safe, liquid financial instrument, and remains profitable.

 

We will issue such debenture instrument gradually. For the next phase will be done by considering correct timing by taking into account of market condition both internal and external,” he said.

 

Previously, Pefindo has awarded idAAA rank to BNI. The outlook of that rank is stable. Pefindo also awarded idAAA rank to the emission plan of Sustainable Debenture Phase I. That rank reflects a critical importance interest level for Government of Indonesia as a controlling shareholder, extremely strong business position, and extremely strong liquidity profile. An obligor with idAAA rank is the highest rank awarded by Pefindo. Obligor’s capability to fulfill its long-term financial commitment, relatively against other Indonesia obligors, is superior.

 

Issuance of this BNI debenture cannot be separated from the economic and market development today, where several parties estimate global economy recovery is relatively faster in 2017 than in the past 2016. Then projected in the next two years, the world’s economy is estimated will be relatively better.

 

International Monetary Fund (IMF) is projecting the world economic consecutively will grow 3.5% in 2017 and 3.6% in 2018. That is based on the efforts of several developed and developing countries (emerging economics) to accelerate their respective economy.

 

The rating agency Standard and Poor’s (S&P) places Indonesia at Investment Grade (investment worthy) by increasing Indonesian rank to BBB- level/ stable outlook on 19 May 2017. This gives positive impact and is expected to become capital inflow stimulus to debenture market post Indonesian upgrading. According to S&P, that decision is based on the decrease of fiscal risk in the line with Government’s budget policy which more realistic so as it limits possibility of worsening deficit in the future significantly. On the other hand, S&P also is projecting the state revenue improvement as advanced impact of acquisition of tax amnesty program data as well as well-managed and more controlled fiscal expenditure management.

 

By considering the world’s and domestic economy conditions, as well as technology development in the field of financial service, policy of authorities (monetary, banking, and fiscal), as well as improvement plan of internal business process,  BNI plans to remain grows above the banking industry average. In order to achieve that objective and to realize BNI vision to become an excellent Financial Institution in Service and Performance, so the Policy of BNI in 2017 is to aggressively grow, but remain to be in prudential corridor. Indicator of that policy is measured from amount of asset, investment return level, employee productivity, synergy between unit and subsidiary, and excellent service as well as company value for investor.

 

One of BNI funding strategies for 2017 is to remain prioritize the growth of Third Party’s Fund (DPK) by healthy and sustainable composition (sustain), particularly low budget fund (CASA). In this matter to support the optimum asset growth, ideal funding composition, and more efficient cost of fund, is allowed for BNI to perform funding from Non-Conventional DPK (both Rupiah and Foreign Exchange) but not limited to issuance of Senior Debenture/ Medium Term Notes (MTN), Negotiable Certificate of Deposit (NCD), as well as other sustainable funding program. That non-conventional plan is carried out by taking into account of liquidity condition and market condition as well as the right timing.  

 

For more informationn, please call

Kiryanto, Corporate Secretary BNI

Phone: 021-5728387, Email : bni@bni.co.id

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