Bank Permata raises $75M from sale of subordinated debt

Bank Permata raised Rp 700 billion or $75 million from the sale of subordinated debt that it offered from June 8 to 12.

The debt sale is part of the lender’s move to raise Rp 2.5 trillion during the next two years.

“Strong demand from investors in the midst of tight market conditions shows the trust that investors have in Permata Bank,” said Giridhar S. Varadachari, the bank’s financial director.

Indonesian companies are selling bonds to capitalize on low borrowing costs in Southeast Asia’s largest economy.

Pemeringkat Efek Indonesia, or Pefindo, ranked Permata’s debt at idAA- with a stable outlook.

Proceeds from the sub-debt sale would be used to boost the firm’s capital base.

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