BTPN Issues Bonds to Support Business Growth
Jakarta, 31st August 2009. PT Bank Tabungan Pensiunan Nasional Tbk (BTPN) will soon issue bonds amounting to Rp 500 billion to support business expansion. The bond issuance that has been given national long-term rating of A + (idn) with positive outlook by Fitch reflects the strong performance and good qualitative aspect of the company. As underwriters of issuance (underwriters) are PT CIMB Securities Indonesia, PT Mandiri Securities and PT Indo Premier Securities.
"We hope this bond issuance will provide investors with attractive investment instruments and serve as a long-term financing alternative for BTPN," disclosed BTPN President Director Jerry Ng. Furthermore, Jerry explained that BTPN is issuing the bonds after considering the national economic condition that is stable and conducive for the banking business, and untapped business opportunities in the pensioners and micro & small enterprises segments.
"Pension business is the core business that BTPN has specialized in for more than 50 years. The pension business in BTPN has grown consistently from one year to another with sound credit quality. Meanwhile, the MSE segment is a new business developed since the end of last year with the launching of btpn|mitra usaha rakyat," said Jerry Ng. btpn|mitra usaha rakyat offers business growth opportunities to micro & small enterprises by giving financial solutions and training.
BTPN bond issuance is part of the Bank's strategy to secure the availability of long-term funding to support the public funds so that BTPN will be able to perform the intermediation function more optimally. The BTPN I bonds issued this year have the maturities of 3-5 years and fixed interest rate.
Excellent Financial and Business Performance
BTPN's Financial Statements as of 30th June 2009 shows positive trend and reflects capacity growth that will ensure sustainable performance growth in the future.
In H1 2009, the Bank's lending grew 16%, well above the average of the banking industry of only 2%. The lending growth was also complemented with the 40% increase of the third-party funds (TPF), also above the industry average that only grew by 4%. Meanwhile, during the same period, assets grew 33% to reach Rp 18 trillion.
Of course, the lending growth did not compromise the prudential principles that must be applied in risk management, resulting in NPL ratio following a satisfying trend. As of 30th June 2009, gross NPL ratio stood at 0.55%, with while net NPL ratio was only 0.02%. Moreover, amidst its business expansion, as of 30th June 2009, BTPN managed to maintain capital adequacy ratio of 23.0% and record net income of Rp 140.6 billion.
Consistent with our business strategy to serve pensioners and MSEs, BTPN has continued to expand the operational network by developing the infrastructure through the opening of the offices and recruiting more employees. By 30th June 2009, BTPN' distribution network included 688 offices. During the first half of 2009, 2,500 new employees were recruited, bringing the scale of workforce to a total of 7,750 employees.
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