06 Sep 2023
ABNR Acts for PT Bank IBK Indonesia on USD 66-million Rights Issue
ABNR advised PT Bank IBK Indonesia Tbk, the Indonesian majority owned subsidiary of South Korea’s state-owned Industrial Bank of Korea, on their recent rights issue that raised approximately IDR 1 trillion (USD 66 million), after deduction of fees and costs. The transaction was closed on 28 July 2023.
The rights issue was conducted in order to give effect to Industrial Bank of Korea’s commitment to boosting client’s capital in line with Indonesian Financial Services Authority (OJK) recommendations. It marks the fourth rights issue ABNR has handled on behalf of PT Bank IBK Indonesia Tbk, and the fifth to be conducted by the client.
In addition, ABNR advised client on the fulfilment of foreign and local shareholding requirements for Indonesian banks whose shares are listed and traded on the Indonesian stock exchange, and on how best to meet the mandatory unlisted requirement during the rights issue process. Indonesian law requires at least 1% of the total share capital of a bank to be unlisted and held by Indonesian citizens or entities.
The ABNR team advising on the transaction was led by Mr. Emir Nurmansyah and Ms. Chandrawati Dewi, and included senior associate Mr. Rully Hidayat, and associates Ms. Nesya Salsabila Ashari and Mr. Fauzan Permana.