Indonesia's BCA raises $207-M from stake sale

Bank Central Asia raked in $207 million from treasury stock sale to the Credit Suisse Group in Hong Kong.

The bank sold 198.78 million shares, or around 0.8 percent of its treasury stock and sold the shares at Rp 9,900 apiece, 13 percent higher than the average closing price in the previous 90 trading days.

The lender raked in Rp 1.97 trillion from the recent share sale.

BCA claimed the price was higher than the price it paid for the buyback of these stocks from the local market.

The lender did not disclose the repurchase price from the initial buyback.

Kim Eng Securities in Jakarta saw the share sale as a further attempt to support the bank’s capital.

“This means additional support to our 20 percent year-on-year loan growth estimate for 2013, as the sale would strengthen BCA’s capital adequacy ratio,” Kim Eng said in a note to clients on Friday.

Kim Eng remains positive on BCA’s earnings in 2012. “We are likely to see strong full year results from BCA at the end of March,” Kim Eng said in the report.

During the first nine-month period, net income at BCA rose 8.1 percent to Rp 8.3 trillion, while its net interest income rose 15 percent to Rp 14.2 trillion this year.

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