PADANG (Yosefardi) – Regional bank PT Bank Pembangunan Daerah (BPD) Sumatra Barat, or Bank Nagari, plans to issue Islamic bonds (Sukuk Mudharabah II) worth Rp100 billion, to fund its expansion next year, Bisnis.com reported.
The sukuk will have tenor of 5 years and will offer interest rate of 10.6% to 11.1%. PT Mandiri Sekuritas and PT Danareksa Sekuritas act as underwriters for sukuk issuance.
The bank also plans to issue bonds worth Rp500 billion to support its financing or credit expansion next year. Bank Nagari targets its loan, assets, and third party funds to grow by 12% next year.
As at third quarter of 2015, Bank Nagari’s assets increased 7.67% to Rp20.20 trillion, third party funds rose 5.4% to Rp15.4 trillion, and loan grew by 9.58% to Rp14.4 trillion.