Bank Danamon to issue $224mln bonds

Proceeds will be used for SME lending as conducive business condition fuelled the lender’s 25% growth in September.

Indonesian lender PT Bank Danamon Indonesia plans to issue rupiah-denominated bonds of Rp2 trillion (US$224 million) to expand its credits particularly to micro, small and medium businesses.

"The plan to issue the bonds follows the positive momentum of our credit growth supported by conducive business condition," Danamon president director Henry Ho said here on Tuesday.

The fixed rate bonds will mature in three to five years, according to a report in Trading Markets.

The bank recorded a 25 per cent credit growth in the year to September 2010.