Bank Danamon seeks $586 million from rights issue

Indonesia’s Bank Danamon is seeking to raise up to Rp5 trillion $586 million from its upcoming rights issue, according to indicative terms announced yesterday. Danamon is controlled by Temasek Holdings and, according to its website, ranks as the sixth-biggest bank in Indonesia by asset size.

While the final price won’t be fixed until August 15, it will come at a discount ranging from 15.8% to 28.1% versus last Friday’s closing price of Rp5,700 and at a discount of 14.3% to 25.4% versus the theoretical ex-rights price Terp, the bank said.

This is wider than the discount offered on the rights issue by larger rival Bank Mandiri...