First in Indonesia, BNI Issues AT - 1 Bond

First in Indonesia, BNI Issues AT - 1 Bond

Jakarta, 4 October 2021 -- PT Bank Negara Indonesia (Persero) Tbk or BNI has issued Additional Tier-1 Capital Bond of 2021 of USD 600 million or around Rp. 8.6 trillion (assuming an exchange rate of Rp. 14,299 per USD). The securities issued at an interest rate of 4.3% per annum are subject to the provisions of Regulation S (“Reg S”), under the US Securities Act, and are listed on the Singapore Stock Exchange. BNI is the first bank in Indonesia to issue this Additional Tier 1 capital instrument.

This corporate action is a step by the Company to take advantage of the opportunities that are still very open and to expand the business. This capital strengthening is also intended to add cushion in mitigating business risks that may arise amid uncertainty due to the Covid-19 pandemic. 

For this company's action, the Financial Services Authority (OJK) has approved the determination of funds from the issuance of the BNI Additional Tier-1 Capital Bond 2021 as Additional Core Capital. These provisions are effective since the Decree of OJK was issued on 30 September 2021. 

“We see that development opportunities are very open, while capital is still limited. Therefore, we are strengthening capital," said BNI’s Finance Director, Novita Widya Anggraini, in Jakarta, Monday (4 October 2021). In the series of issuance plans, on 16 September 2021, BNI has completed the roadshow and pricing of AT-1 Capital Securities. During the bookbuilding process (initial offer), BNI received oversubscribed to exceed USD 1.8 billion, from the planned issuance of USD 600 million.
New History

With the issuance of this instrument, BNI made a new history as the first bank in Indonesia to issue Additional Tier 1 capital instruments and offer them to foreign public investors. The proceeds from the issuance of the Additional Tier-1 Capital Bond of 2021 are used for strengthening capital, increasing financing, general funding of the Company, and strengthening the composition of the long-term fund structure. 

The features in the Additional Tier-1 Capital Bond 2021 issued are debt instruments that have capital characteristics, are subordinated in nature, do not have a period of time, and the payment of yields cannot be accumulated (perpetual non-cumulative subordinated debt).

“This capital strengthening is our step to jump in and move faster. Under normal conditions, this kind of capital fulfillment can only be met in 2025. We will be the first bank in Indonesia to do so,” said Novita.

For more information, please contact:
BNI Corporate Secretary 
Phone: 021-5728387


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