PT Bank Danamon Indonesia's (BDMN.JK) existing shareholders have already made pledges for 90% of the lender's IDR4 trillion (US$335 million) rights issue, people close to the situation said Thursday.

Subscriptions to the rights offer begin April 7 and end April 14.

One person said a number of parties that don't have any holdings in the bank have expressed interest in purchasing the new shares by sub-underwriting the deal.

He declined to comment on the identity of the parties, but said they include other banks, brokers and hedge funds. Sub-underwriters underwrite the risk taken on by underwriters.

Singapore's Temasek Holdings Pte Ltd., which owns a 67.9% stake in Bank Danamon through wholly owned Asia Financial (Indonesia) Pte Ltd., isn't one of the sub-underwriters, another person said.

Bank Danamon said when it launched the rights issue last month that Asia Financial had undertaken to fully subscribe to its entitlement.

The roadshow for the deal ended Wednesday, after touring Jakarta, Hong Kong, Singapore, London and the Netherlands.

Indonesia's fifth-largest lender by assets said last month it will issue shareholders with 68 preemptive rights for every 100 shares held at IDR1,200 each, or a discount of 47% to the stock's price of IDR2,250 before the announcement.

Proceeds from the rights issue will strengthen the bank's capital position and support growth in its network. It will boost the lender's Tier 1 ratio - a measure of a bank's financial strength - to 19.4% from 14.1%.

Bank Danamon's share price has traded up since the announcement, reflecting the warm reception the rights issue has received from investors.

At 0545 GMT, its shares were at IDR2,600.

Citigroup Inc. (C) and Morgan Stanley (MS) are underwriters on the deal.

-By Amy Or, Dow Jones Newswires; 852-2832 2335; amy.or@dowjones.com