BBRI – To issue MTN with a principal of IDR5 tn

Bank Rakyat Indonesia (BBRI) issues Medium Term Notes (MTN) with a principal of IDR5 tn, collectively, without public offering. The type of securities have been registered to Indonesia Central Security Depository (KSEI) under the title Series A and B of MTN of Bank BRI Year 2022. The principal offered in Series A amounts to IDR2 trillion, while the principal of Series B is set to IDR3 trillion. The coupon rate that is attached to Series A is set to 6.60% per annum, and the coupon of Series B is set to 6.98% per year. The tenor of each series is 2 and 3 years, in that order. (Source : IDN Financials). Comment: Despite there is no official information on the purpose of the MTN issues plan, we continue like BBRI for its solid capital and micro lending customer based. We think the latest synergy with Pegadaian and PNM will create ample of room for growth. We believe BBRI could get benefit from the huge potential micro market ing forward as SME’s are majority has not been served.