Maybank Indonesia to postpone rights issue as loan growth cools

News24xx.com - Private lender Maybank Indonesia plans to postpone its rights issue plan on the back of flat loan growth in the first two quarters.

Its loan disbursement did not make any significant moves in the first quarter and the publicly listed lender is anticipating a similar result in the second quarter.

"If the loan growth stays the same in the second half, we probably won’t need to carry out the rights this year. Maybe in 2018," Maybank finance director Thilagavathy Nadason said recently.

Maybank — part of Malaysia’s Maybank Group — has disbursed IDR 114.2 trillion (USD 8.57 billion) in loans as of March, only 5.7 percent higher compared to a year ago.

Loan disbursement in the first quarter was mainly driven by growing small and medium enterprises (SMEs) and commercial segments.

It collected IDR 117.7 trillion in third party funds (DPK) during the first quarter, a slight growth of 2.5 percent year-on-year.

The bank has stated it is looking to issue IDR 2 trillion worth of new shares this year to support and diversify its loan funding. It is also looking to sell debt papers to generate between IDR 600 billion and IDR 1 trillion of funds in July 2017.

On Thursday, it issued IDR 330 billion worth of negotiable certificate of deposit (NCD) in two series.

The A series, which aims to raise IDR 300 billion, has a 365-day tenure and 7.2 percent of coupon rate, while the B series has a 18-month tenure and 7.35 percent rate.