JAKARTA. PT Bank Pembangunan Daerah Jawa Barat dan Banten Tbk (BJBR), starting this June, will issue its Subordinated Bond Year 2024 worth IDR 1.5 trillion. This bond is a part of a more extensive Shelf-Registration Bond IV of Bank BJB, which totals IDR 3 trillion.

As quoted from Bisnis Indonesia today (10/6), BJBR mentioned that in this initial phase, the principal that will be issued will be set to IDR 1.5 trillion at max. The bond will be offered in two series: series A and B with a value of 100% of its principal.

The interest is paid every three months starting from the emission date, meaning that the first round of payment for series A and B will be paid on October 5, 2024. Then, the last round of payment for series A will be set to July 5, 2029, whereas the last interest payment for series B will be on July 5, 2031.

The management of BJBR mentioned that the proceeds of this bond issuance, after deducting emission fees, will be entirely used to increase capital structure. The proceeds will then be considered as auxiliary capital or tier-2 capital. “It is related to credit expansion and the increase of composition of long-term fund raise,” said BJBR in the release, as quoted from Bisnis Indonesia.

Below is the schedule of public offering of Subordinated Bond of Bank BJB:

·   Estimated initial public offering period: June 10 – June 21, 2024

·   Estimated effective date: June 27, 2024

·   Estimated public offering period: July 1 – July 2, 2024

·   Estimated allotment date: July 3, 2024

·   Estimated refund of order: July 5, 2024

·   Estimated electronic distribution of bond: July 5, 2024

·   Estimated listing on Indonesia Stock Exchange: July 8, 2024

(AM/ZH)