Jakarta. Bank Rakyat Indonesia Agroniaga, which is controlled by state-owned Bank Rakyat Indonesia, set to raise as much as Rp 558 billion ($43 million) in a shares sale in July, to support its financing activities this year.

The local lender is offering approximately 5.59 billion shares at a price of Rp 100 per piece in a preemptive rights issuance, according to a prospectus published in Investor Daily on Monday.

BRI Agroniaga will hold an extraordinary shareholders meeting on June 18 to gain approval for the plan, the prospectus said. Investors must register for the preemptive rights issuance by June 30 and the new shares are scheduled to be listed on the local stock exchange on July 2.

“Proceeds from the share sale will be used entirely to bolster our capital structure, which will later be used to expand our loan base,” the company management noted in the prospectus.

BRI Agroniaga is a unit under BRI — the country’s second-biggest lender by assets — that focuses on lending to companies in the agribusiness sector. 

Profit at BRI Agroniaga grew 27.5 percent to Rp 20.4 billion during the first three months this year compared to the same period in 2014, as its net interest income climbed 17 percent to Rp 72 billion.

GlobeAsia

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Source: The Jakarta Globe