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Capital Markets

Indonesia bank aims to upgrade shariah unit through IPO

BRI Syariah wants to take advantage of government support for industry

State-owned Bank Rakyat Indonesia is planning an initial public offering for its shariah-compliant subsidiary, BRI Syariah, to support expansion. (Photo by Erwida Maulia)

JAKARTA -- Indonesia's second-largest lender by assets, Bank Rakyat Indonesia, said on Thursday it wants to expand its shariah-compliant business with an initial public offering of subsidiary BRI Syariah, planned for early May.

BRI is targeting at least 1.3 trillion rupiah ($94.4 million) from the sale of 27% stake in the shariah unit, with 80% of the proceeds to be used to increase shariah financing for customers, and the rest to support digitization and upgrade branch offices. BRI is conducting a domestic roadshow for the IPO until April 20.

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