Woori Bank will start its investment banking (IB) operations in Indonesia, strengthening its efforts to tap the local market.
According to the financial source on April 1, Woori Bank established a team dedicated to IB at Woori Saudara Bank, a local subsidiary in Indonesia, in February. Although its local operations are currently retail-based, it plans to target the fast-growing Indonesian market with two-track efforts by fostering the IB sector.
"In Indonesia, there are many IB deals that are centered on social overhead capital (SOC)," a Woori Bank official said. "We are planning to expand our corporate financial sector in Indonesia by participating in deals by developing IB capabilities of local corporations and receiving support from nearby Singapore and Hong Kong branches."
Indonesia is the world's fourth-largest country with a population of 270 million. Although it has much room to expand retail operations, it also has great growth potential in the corporate and financial sectors such as real estate development and infrastructure financing.
Woori Bank plans to participate in syndicates organized by global investment banks or club deals by large local banks, focusing on transactions that have been secured with stability.
Indonesia is one of the most successful regions in which Woori Bank has made inroads. Woori Saudara Bank recorded annual operating income of $106.5 million last year, becoming the first overseas branch of Woori Bank to surpass $100 million.
It has grown 356 percent in four years compared to 2014 when it entered Indonesia by acquiring the local Saudara Bank.
