Herbert Smith and its associated Indonesian law firm Hiswara Bunjamin & Tandjung (HBT) have advised Citi and Deutsche Bank, as standby purchasers, in relation to the approximately US$560 million rights issue by PT Bank Danamon Indonesia Tbk.
Bank Danamon is listed on the Indonesia Stock Exchange and is one of Indonesia’s leading providers of consumer banking and financial services. The proceeds of the offering will be used to strengthen Bank Danamon’s capital position and to fund growth in its key business lines, including microfinance, SME and automotive financing.
The 138 for 1,000 rights issue was well-received by Bank Danamon’s shareholders, with over 95% of shareholders agreeing to the issue of new shares and the offering being fully subscribed, with excess share applications reaching 150,819,500 shares.
The Herbert Smith team consisted of corporate partners Austin Sweeney and Kevin Roy, counsel Siddhartha Sivaramakrishnan and associate Felipe Duque. The HBT/Herbert Smith team in Jakarta was led by partners David Dawborn and Kristo Molina, assisted by associate Viska Kharisma.
Commenting on the deal, David Dawborn noted:
“This significant transaction, executed on a challenging timetable, underscores our market leading reputation for cross-border Indonesian capital markets financings and highlights the strength of our combined international and Indonesian platform.”
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