BBTN - Rights issue price set at IDR1,200

Bank Tabungan Negara (BBTN) rights issue price is pegged at the level of IDR1,200 per share. BBTN will release a maximum of 3.44 bn series B shares, equivalent to 24.54% of its issued and fully paid-up capital. BBTN will receive IDR4.13 tn in funds through this corporate action under the pre-emptive rights scheme. Holders of 100 mn ordinary shares in the name of those who have been issued and fully paid up in the company (old shares) whose names are recorded in the shareholders' name (DPS). (Source : Cnbc Indonesia) Comment: The rights issue will strengthen its capital, despite the bank continuously has been able to managed solid Tier-1 CAR. The additional fund will also benefit BBTN in channeling its subsidized housing portfolio loan.