Jakarta, 8 December 2022 -- PT Bank Negara Indonesia (Persero) Tbk or BNI (stock code: BBNI) will again issue a Negotiable Certificate Deposit (NCD) in the fourth quarter of 2022. This year's NCD was issued with a total issuance value of Rp 3 trillion. The NCD consists of Rupiah NCD amounting to Rp 2.5 trillion and USD NCD amounting to USD 31,500,000 or equivalent to Rp 500 billion.
Investor interest in the NCD issuance was quite high. The Rupiah NCD was oversubscribed 2.4 times and the USD NCD was oversubscribed 1.6 times during the bookbuilding stage.
The NCDs have been registered at the Indonesian Central Securities Depository (KSEI) under the name BNI Rupiah NCD Year 2022 and BNI US Dollar NCD Year 2022. The Rupiah NCD was issued in three series, namely series A with a six-month tenor at a rate of 5.9%, series B with a nine-month tenor at a rate of 6% and series C with a 12-month tenor at a rate of 6.2%. As for the USD NCD, it was only issued in one tenor, namely six months with a rate of 4.25%.
BNI Treasury Director Putrama Wahju Setyawan said, the proceeds from the issuance of this NCD after deducting issuance costs will be used entirely by the Company for credit expansion in the context of business development.
"This is in accordance with the company's plan to seek additional funding apart from Third Party Funds (TPF) to meet BNI's financing needs, especially credit funding and long-term loans," Putrama said in Jakarta, Thursday (8/12/2022).
He further said that BNI was the first bank to issue USD NCDs in the domestic market in Indonesia and received a positive response from investors. The NCD issued by BNI is an alternative instrument for investors and customers with competitive returns.
Putrama is also optimistic that loans next year will continue to increase. So that BNI can further contribute to the continued recovery of the national economy, amid increasing global uncertainty.
"Loan expansion shows banking support in the national economic recovery which is getting stronger after being hit by the Covid-19 pandemic," Putrama said.
BNI's lending will focus on low-risk segments and top tier debtors in each prospective industrial sector. The company also hopes that this high-quality credit exposure will have an impact on BNI's loan quality in the long term. (*)