JAKARTA. Kookmin Bank, the controlling shareholder of PT Bank KB Bukopin Tbk (BBKP) is committed to taking all of its rights in the corporate rights issue with a target of IDR 12 trillion and also preparing a number of funds to take part of the rights issue shares which are not absorbed by public shareholders.

Vice President Director of Bank KB Bukopin Robby Mondong said that in the plan to increase capital through the rights issue, his party is also exploring cooperation with several institutions that are ready to buy the public portion of rights issue shares if there are remaining shares that are not executed by public shareholders. BBKP plans to issue a maximum of 120 billion new shares with a nominal value of IDR 100 per share.

Robby explained that his party was in the process of applying for a permit to the Financial Services Authority. An effective statement from the regulator is targeted to be obtained in April so that the rights issue can be completed in May 2023, Robby said last week.

The proceeds from the rights issue will be used by the company for business development, investment in the information technology sector to support digital transformation and to improve assets. However, most of the funds will be used for business development, including business development in the micro, small and medium enterprises (MSMEs), wholesale and retail segments.

From the wholesale side, Bank KB Bukopin will expand through the Korean Link Business, which until March 2023 has reached more than IDR 3 trillion. Kookmin Bank is very large in Korea, and is an advantage for Bukopin in establishing cooperation with Korean companies in Indonesia. BBKP is also strengthening cooperation with state-owned companies and private companies by actively participating in syndicated financing. (AM/LM)