PT Bank Tabungan Negara (Persero) Tbk (BTN) strengthened its capital structure by receiving a Rp2 trillion Shareholder Loan (SHL) from PT Danantara Asset Management (Persero) (DAM) to support business expansion, particularly in housing finance (24/12).

The facility is classified as Additional Tier 1 (AT1) capital in accordance with regulations issued by the Financial Services Authority (OJK).

Capital Reinforcement Aimed at Supporting Housing Financing

BTN President Director Nixon LP Napitupulu said the capital strengthening was carried out in response to increasing financing needs, especially in the housing sector, which remains the bank’s core focus.

“The capital position of BTN is at a healthy level, with a Capital Adequacy Ratio (CAR) in the range of 18–19%. This Shareholder Loan is prepared to maintain sufficient room for credit expansion, in line with the ongoing growth of housing financing,” Nixon said.

Housing Loans Dominate BTN’s Credit Portfolio

As of the third quarter of 2025, BTN recorded total loans and financing of Rp381.03 trillion.

The largest portion came from the housing sector, which reached Rp322.53 trillion, requiring a stronger capital structure to support continued credit expansion without pressuring capital ratios.

Additional Tier 1 Structure Provides Capital Flexibility

The Shareholder Loan is structured as a perpetual, subordinated, and non-dilutive Additional Tier 1 instrument.

This structure allows the additional capital to directly strengthen BTN’s Tier 1 Capital without short-term principal repayment obligations and without exerting pressure on liquidity or daily funding.

“This additional core capital provides flexibility for BTN to manage credit growth in a more measured and prudent manner, especially to support housing financing and its related ecosystem, while safeguarding long-term capital resilience,” Nixon explained.

Transaction Complies With Governance Regulations

The Shareholder Loan was provided by DAM as a shareholder of BTN, reflecting alignment in strengthening the bank’s competitiveness and corporate value.

The affiliated transaction complies with POJK No. 42/POJK.04/2020, does not contain any conflict of interest, and has undergone governance processes and fairness assessments by an independent party.

PHOTO: BTN

This article was created with AI assistance.