Indonesian state-owned lender PT Bank Negara Indonesia (BNI) has issued negotiable certificates of deposit (NCDs) worth 3 trillion rupiah ($192 million) to support loan disbursements.
According to a statement on Friday, the NCD consists of two parts — in local currency worth 2.5 trillion rupiah offered in three series and carrying an interest rate of 5.9-6.2%, and in USD currency worth $31.5 million with an interest rate of 4.25%.
The issue garnered significant investor interest, with the rupiah NCD being oversubscribed 2.4 times and the USD one 1.6 times.
BNI’s treasury director, Putrama Wahju Setyawan, said BNI is the first Indonesian lender to have issued NCDs in US currency for local investors.
NCD is a popular funding source for Indonesian lenders besides third party deposits. Indonesian lender Bank Victoria also launched NCDs worth 220 billion rupiah in September 2022.
In September last year, a unit of Malaysia’s Maybank in Indonesia issued NCDs worth 1 trillion rupiah.
In the nine months of 2022, BNI’s net profit increased 76.8% on an annual basis to 13.7 trillion rupiah. Its loans grew 9.1% year on year (yoy) to 622.61 trillion rupiah during the period. However, its deposits increased only 2.5% yoy to 685.4 trillion.
In May this year, BNI completed the acquisition of 63.92% in Indonesian small lender Bank Mayora’s shares. Bank Mayora was set to become a fully digital bank in the first quarter of 2023.