Pursuing minimum capital requirement of IDR 2 trillion, small banks are competing to hold rights issue

Reporter: Maizal Walfajri | Editor: I knew Laoli

KONTAN.CO.ID – JAKARTA. Small banks continue to strengthen capital by rights issue in the midst of a pandemic. This is one way to comply with the Financial Services Authority (OJK) Regulation No. 12/POJK. 03/2020 concerning Consolidation of Commercial Banks so that banks have a minimum core capital of IDR 2 trillion this year and IDR 3 trillion at the end of 2022.

There are 13 banks that still have core capital below IDR 2 trillion until June 2021. They are BGTG, BNBA, BACA, BBYB, BBHI, AMAR, BBSI, BINA, BCIC, BMAS, BSWD, BVIC, and AGRS. A number of banks have stated that they will strengthen capital with rights issue.

PT Bank Capital Indonesia Tbk (READ) ensured to roll out capital strengthening with a limited public offering (PUT) IV plan. Bank Capital plans to issue as many as 20 billion new shares with a nominal value of Rp 100 per share.

Therefore, Bank Capital will seek the approval of shareholders at the Extraordinary GMS to be held on August 25, 2021. Until June 2021, Bank Capital has a core capital of Rp 1.51 trillion, up from last year’s position of Rp 1.39 trillion.

Also Read: Sejahtera Bintang Abadi (SBAT) intends to issue rights with a target of Rp 130 billion

“It will still be carried out this year to comply with OJK regulations through Right Issue,“said President Director of Bank Capital Wahyu Aji, President Director to KONTAN on Tuesday (3/8).

After the implementation of the addition of capital by granting pre-emptive rights (HMETD), the Shareholders of the Company who do not use the Pre-emptive Rights, the percentage of their share ownership in the Company will be diluted up to a maximum of 73.86%, if all the Pre-emptive Rights issued by the Company are exercised by rights holders who are entitled.

Until the first half of 2021, Bank Capital’s shareholders consist of PT. Inigo Global Capital flank 14.71% of the total outstanding shares. Then PT Delta Indo Swakarsa as much as 13.96% and PT Asuransi Simas Jiwa at Rp. 10.94%. Meanwhile, the public owns 60.39% of the total shares.

In addition, there is PT Bank Neo Commerce Tbk (BBYB) which has just completed its PUT IV with excess demand (oversubscribed) up to 426 million shares or equivalent to Rp 127.9 billion. Because the PUT IV with Pre-emptive Rights was oversubscribed up to 426 million new shares.

Also Read: Meet the core capital requirements, Bank Capital ensures that it will hold a rights issue

The securities offered in this PUT IV were 832,724,404 shares with an exercise value of Rp 300 for each share. Thus, the amount of funds to be received by the Company in the context of this PUT IV is Rp. 249.82 billion.