Bank BTN EGMS Approved Issuance of New B Shares Worth 4.6 Billion Series

JAKARTADAILY.ID – The Extraordinary General Meeting of Shareholders (EGMS) of PT Bank Tabungan Negara (BTN) on Tuesday, October 18, 2022, approved the issuance of new shares of up to 4.6 billion Series B shares with a nominal value of Rp500 per share.

These new shares are issued through a pre-emptive rights (HMETD) scheme, or rights issue,

The exercise price and rights ratio will be submitted in the final prospectus, after obtaining an effective statement from the Indonesian Financial Services Authority (OJK).

"The EGMS also approved the granting of authority to the Company's Board of Commissioners and Board of Directors to carry out all necessary actions related to the rights issue," explained Bank BTN President Director Haru Koesmahargyo at the press conference of Bank BTN's EGMS in Jakarta, Tuesday 18 October 2020.

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Haru revealed, from the issuance of this new share, Bank BTN is targeting a total fund of Rp 4.13 trillion, with details of Rp 2.48 trillion being state capital participation (PMN) and the remaining Rp 1.65 trillion from public shareholders.

After the rights issue, the percentage of government shares did not change and remained the controlling shareholder.

"All funds obtained from the rights issue, after deducting costs, will be used for the Company's credit distribution in order to support the National Housing Program, in particular the Government's One Million Houses Program," Haru said.

According to Haru, several factors are behind the company's rights issue. First, the need for national housing is still very high. Based on data from the Ministry of Public Works and Public Housing, the backlog of home ownership in 2021 is 12.7 million households.

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"The company has a strategic role in accelerating the completion of the homeownership backlog through the provision of Home Ownership Credit (KPR), especially to Low-Income Communities (MBR)," he said.

Second, in order to accelerate the completion of the housing backlog, the company targets housing financing of 1.32 million units by 2025. In addition to providing access to housing finance, the company will cooperate with developers to develop affordable housing for the millennial generation.

Third, the company continues to develop its business in the housing ecosystem, one of which is through business expansion along the housing supply chain and creating a digital housing ecosystem as a source of new growth going forward.