이 기사는 2021년 06월 23일 07:55 thebell 에 표출된 기사입니다.

Woori Bank will inject $100 million into its Indonesian subsidiary Bank Woori Saudara (BWS).

Woori Bank’s board of directors approved the bank’s participation in BWS’s rights offering last month, industry sources said Monday.

The plan needs an approval from Indonesia’s financial watchdog Otoritas Jasa Keuangan (OJK) and BWS’ shareholders.

Woori Bank is the largest shareholder of BWS with a 79.9% stake. To complete the rights offering, the bank needs to discuss the issue with Arifin Panigoro, the second largest shareholder with a 9.6% stake, and Medco Intidinamika, the third largest shareholder with a 4.7% stake. The actual payment is expected to be made in October.

The capital hike is expected to boost the BWS’ equity capital to 680 billion won ($599 million) from 570 billion won. The Indonesian bank plans to use the proceeds to expand its local sales network and accelerate its digital finance.

In February, OJK upgraded BWS' rating to Business Activities (BUKU) III level as the lender raised its core capital requirement to 5 trillion rupiah. The BUKU III category is the second-highest bank capital classification category, following BUKU IV.

Having met the OJK’s higher capital standards, the bank plans to expand its businesses by strengthening bancassurance businesses ― selling insurance products to bank customers ― and securities prime brokerage services.

BWS is leading Woori Bank’s overseas business along with the Cambodian subsidiary. It recorded net income attributable to controlling interest of around 30 billion won last year, which accounts for around 30% of Woori Bank's total income from its overseas subsidiaries.

Woori Bank has actively injected capital into its Southeast Asian subsidiaries. Last year, it put 160 billion won into its Vietnamese subsidiary and 120 billion won into its Cambodian subsidiary. (Reporting Hyun-jung Kim)