PT Bank of India Indonesia Tbk (BSWD) submitted its response to the Financial Services Authority (OJK) in response to the summons for the Extraordinary General Meeting of Shareholders (EGMS) which they will hold on Wednesday, March 16, next.
In the EGMS, the company's plans to increase capital through the mechanism of issuing rights issue will be discussed.
In response, management said that the estimated maximum number of planned shares with Pre-emptive Rights (HMETD) is around 1.65 billion shares.
Efforts to increase capital are carried out to meet regulatory requirements regarding the minimum core capital limit for banking institutions.
"The company will submit a registration statement to OJK as soon as the plan to increase capital with Pre-emptive Rights is approved by the shareholders, provided that the period between the date of approval of the EGMS and the effective date of the registration statement is no more than 12 months," wrote the management of PT Bank of India Indonesia Tbk, in an official statement, as reported by the IDX's Information Disclosure, Friday, March 4.
According to the company's projections, the rights issue will be able to increase BSWD's core capital to Rp2.4 trillion. The increase in capital is expected at the same time to encourage better financial performance, including in terms of the company's portfolio in the credit sector.
"All funds received from additional capital with Pre-emptive Rights, after deducting issuance costs, will be used to strengthen the capital structure and expand credit," the management wrote.
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