BBNI - Set to issue second AT1 bond on Singapore Exchange

BBNI - Set to issue second AT1 bond on Singapore Exchange Bank Negara Indonesia (BBNI) has announced plans to issue its second Additional Tier-1 (AT1) capital bond in April 2026 to strengthen its capital structure. In an official statement, BBNI said the AT1 bond issuance will be conducted alongside a tender offer to buy back its first AT1 bond issued in 2021 in cash. “The tender offer participation period runs from 14–22 April 2026, with settlement scheduled for 24 April 2026,” said Okki Rushartomo, corporate secretary of BBNI. BBNI was the first Indonesian bank to issue an Additional Tier 1 capital instrument offered to offshore investors in 2021. At that time, the bank issued AT1 bonds worth USD600 mn, which saw oversubscription reaching USD1.8 bn. For the 2026 issuance, BBNI has yet to disclose the size, but management said the new AT1 bond will be “listed on the Singapore Exchange and will not be listed on the Indonesia Stock Exchange.” BBNI management said it has disclosed the issuance and buyback plan via Bloomberg and has conducted a series of investor calls across Asia, Europe, and the Middle East and Africa (EMEA) on 14 April 2026. According to BBNI, the AT1 bond is a capital instrument that is subordinated, perpetual in nature, and features non-cumulative coupon payments (perpetual non-cumulative subordinated debt). “The issuance of the new AT1 and the execution of the tender offer for the existing AT1 are expected to have a positive impact on the company’s capital structure and support its business expansion,” Okki added. (Source : Idn Financials)