Financial Services Authority Approves Rights Issue Of Conglomerate Hary Tanoesoedibjo's Bank That Has Been Targeting IDR 4.5 Trillion In Funds

Illustration. (Photo: Doc. MNC Bank)

JAKARTA - PT Bank MNC Internasional Tbk (MNC Bank) which is a subsidiary of PT MNC Kapital Indonesia Tbk (BCAP) has received an Effective Statement from Financial Services Authority (OJK), August 31, 2021, to exercise Pre-emptive Rights (HMETD).

The agenda for the Pre-emptive Rights is targeting 14.234.614.922 series B shares, with a ratio of 2:1 (two old shares will get one Preemptive Rights), a maximum of 33.33 percent of the total paid-up capital after the Pre-emptive Rights. With the exercise price of the Pre-emptive Rights of IDR 318, BABP is targeting to raise fresh funds of up to IDR 4.5 trillion.

At current prices, post-HMETD Price-to-Book Value (PBV) will be at 2.79x compared to PBV of 7.41x at yesterday's close. The valuation is quite cheap compared to other digital banks in Indonesia, thus giving investors the opportunity to start together with a business growth agenda with significant future improvements.

Funds from IDR 4.5 trillion will be used to strengthen MNC Bank's capital structure and expand the bank's lending capacity of the conglomerate Hary Tanoesoedibjo's bank digitally and user acquisition to support business growth.

In addition, to support the development of MotionBanking applications, including AI-based credit scoring capabilities and the integration of MotionPay, MotionWallet, MotionVisa, MotionMastercard, MotionInsure, MotionTrade, MotionCredit, and other related fintech solutions into the Motion Banking Ecosystem.

Since obtaining a digital onboarding license in early May 2021, MotionBanking, a digital banking application developed by MNC Bank, has begun to improve its business through product innovation and development initiatives targeted at the increasing need for digital banking services, supported by the market potential of the MNC Group ecosystem and through strategic partnerships with other ecosystem players.

"In the near future, with the Open API, we plan to integrate all of Motion Technology's digital capabilities, including stock trading applications, wealth management, insurance, P2P lending, and other solutions being developed into MotionBanking, to make it a one-stop digital financial solution application", said Teddy Tee, COO of MotionBanking in a press release, Thursday, September 2.

Targeting unbanked and underbanked Indonesian citizens at home and abroad, currently, MotionBanking is leveraging the digital economy that allows new customers to open accounts without visiting a branch office, and the initial version allows digital deposits and transaction management, in addition to a roadmap of features that continue to be rolled out such as payments automatic credit cards, virtual credit cards, as well as a range of new digital loan solutions such as Buy Now Pay Later (BNPL), all with the convenience of banking via a smartphone.

In addition, the platform is built on an Open API architecture, which enables fast and seamless integration with other digital-focused strategic partners such as e-commerce players, mobile operators, and e-games in addition to the ability to collaborate with third-party ecosystems. Through this collaboration and strategic partnership, MotionBanking is targeting around 30 million digital banking user accounts in 5 years.