Company Owned By Conglomerate Hary Tanoesoedibjo Pursues Target To Become Book III Bank, Still Needs More Capital Of Rp3.8 Trillion

Conglomerate Hary Tanoesoedibjo. (Photo: Doc. Antara)

JAKARTA - PT Bank MNC Internasional Tbk (BABP) has received approval from shareholders for the plan to increase capital through rights issue and private placement. The General Meeting of Shareholders (GMS) was held last Wednesday 9 June.

Executive Chairman of MNC Group Hary Tanoesoedibjo said that the rights issue will be held this year while the private placement will be reserved for 2022. He targets the amount of funds raised in the rights issue to be able to bring MNC Bank directly up to the category of commercial bank business activities (BUKU ) III.

"It is hoped that it will be completed by the end of August 2021," he said in a public expose.

However, Hary Tanoe did not mention the target figure for obtaining funds. He only targets the rights issue to bring MNC Bank to jump into the BUKU III group.

BUKU III banks have a core capital of more than Rp5 trillion to Rp30 trillion. Meanwhile, as of March 31, 2021, MNC Bank was recorded to have a core capital (tier 1) of Rp1.17 trillion.

This means, MNC Bank needs additional capital of Rp3.83 trillion to enter BUKU III

"The funds that are targeted to be obtained are getting better, the capacity of the bank is getting bigger, the size of the bank is getting bigger. But what is clear is that the rights issue must make MNC Bank enter BUKU 3," he explained.

Previously, the general meeting of shareholders (GMS) of MNC Bank approved the issuance of new shares through a rights issue of 14.2 billion shares, where the owner of 2 old shares can get 1 new share.

Meanwhile, non-HMETD offered 2.5 billion shares or a maximum of 10 percent of the total shares paid up by BABP at a price to be determined later.

The funds obtained from the corporate action will be used to strengthen MNC Bank's capital structure, expand MNC Bank's loan capacity and digitally acquire customers to support business growth.

In addition, to support the development of MotionBanking as the most integrated digital banking application, including the development of AI-based Credit Scoring and the integration of MotionPay as well as virtual credit cards (Visa and Mastercard) and other related fintech applications owned by the MNC Group and external parties.