Want To Get Into The Top 10 Of World Sharia Banks, BSI Will Raise Funds Of IDR7.15 Trillion From Rights Issue

Bank Syariah Indonesia (Fofo: Dok. Antara)

JAKARTA - PT Bank Syariah Indonesia Tbk (BSI) will exercise Pre-emptive Rights (HMETD) on the Indonesia Stock Exchange. The issuance of these new shares uses a rights issue scheme, the aim is to raise fresh funds in the Indonesian capital market worth US $ 500 million or the equivalent of Rp7.15 trillion (assuming an exchange rate of Rp.14,300 per dollar).

Deputy Minister (Wamen) II of BUMN Kartika Wirjoatmodjo or Tiko explained that the issuance of a portion of shares from Bank Syariah Indonesia (BSI) was part of the goal of finding a strategic working partnership.

In the share issuance, the issuer will also target free float or shares owned by the public with an ownership of 7.5 percent. Rights issue will begin in 2021.

"In 2021, Bank Syariah Indonesia or BSI will conduct a rights issue. This is part of the free float provisions and also to find a strategic partner," he said in a virtual market outlook themed Establishing Our Sovereignty: To The Next Frontier in Investment, Wednesday, 10 March.

Not only HMETD, BSI will take other strategic steps this year, the issuer's corporate action plan is carried out until 2023.

"We want to do a rights issue and of course if there is a match of interest, we will be very open to collaborating with investors who want to take block seeds from BSI in the future," he said.

Through this corporate action, BSI is targeting global investors as share owners of issuers through the Sovereign Wealth Fund or Indonesia Investment Authority (INA). BSI is also targeted to be included in the 10 largest Islamic banks in the world.

In fact, BSI can be aligned with Bank Al-Rajhi and Bank Albilad. The two banks are two banks headquartered in Riyadh, Saudi Arabia, with assets valued at US $ 111.3 billion and US $ 23.6 billion in 2019, respectively. Meanwhile, post-merger BSI assets are around US $ 15 billion.