Bank Negara Indonesia targets $1.1bln from rights issue

Target up from $400mln as market has become more conducive for raising funds.

Bank Negara Indonesia, the country's fourth biggest lender, on Wednesday lifted the size of a planned December rights issue to as much as 10 trillion rupiah ($1.1 billion), as it seeks to fund loan growth.

The state-owned bank's capital raising will come in the same month as fellow government lender PT Bank Mandiri's planned 13 to 14 trillion rupiah ($1.11 billion – $1.55 billion) rights issue, making the two rights issues the biggest in Indonesia after PT Bakrie & Brothers raised about 40 trillion rupiah ($4.44 billion) in 2008.

BNI previously said it would raise 6 to 7 trillion rupiah ($665.92 million – $776.91 million), but now sees greater demand from investors who have driven the Jakarta stock market to record highs this year as they seek exposure to strong consumer demand in Southeast Asia's biggest economy.

"Our previous target was actually only about $400 million but the market has become more conducive," said Yap Tjay Soen, BNI's finance director. "We hope that we could sell the new shares above 3,000 rupiah ($0.33) a share."

View the full story in Reuters.