Rights Issue Title, BTN: Every Additional IDR 1 Trillion Of Capital, Generates IDR 12 Trillion Of Credit Disbursement Ability

President Director of BTN Haru Koesmahargyo. (Photo: Doc. Antara)

JAKARTA - PT Bank Tabungan Negara (Persero) Tbk (BBTN) will expand its lending to the housing sector, especially the low-income segment (MBR). This effort was carried out by BTN by holding a rights issue.

President Director of BTN Haru Koesmahargyo assessed that the addition of capital from the government to the company will accelerate the distribution of financing to the MBR segment. The addition of BTN's capital through the pre-emptive rights scheme (HMETD) or rights issue is planned to be held this year.

The government will also participate in the rights issue through state capital participation (PMN) worth IDR 2.98 trillion.

"The government is very supportive of BTN. Currently, there are more people who need housing that must be supported, especially low-income people. Additional PMN will increase our speed of disbursing financing. Without PMN we can still expand but it will be slower," said Haru in a statement quoted by Antara, Monday, July 4.

Haru said that the additional capital will increase the ability of banks to channel credit, so that they can reduce the housing backlog, especially in the MBR segment. Based on data from the 2020 National Socio-Economic Survey (Susenas), the backlog of housing ownership reached 12.75 million.

According to BTN's calculations, each additional capital of Rp. 1 trillion will result in the ability to encourage credit distribution of around Rp. 12 trillion. With the PMN plan of Rp. 2.98 trillion, which represents 60 percent of the government's shares in BTN, the total value of the issuance of new BTN shares could reach Rp. 4.96 trillion, of which the remaining Rp. 1.98 trillion or the equivalent of 40 percent will be obtained from public investors.

Thus, the additional PMN provided by the government can increase credit capacity by up to IDR 58.8 trillion.

"Capital or equity is shareholder's property that becomes a buffer in the event of a risk of loss of bad loans. Therefore, BTN still needs liquidity from public funds and the capital market to expand credit," Haru said.