ABM global bond oversubscribed

IDX-listed integrated coal mining and energy company PT ABM Investama Tbk saw strong demand from international investors for its global bonds worth US$300 million, Bisnis Indonesia reported on Wednesday.

ABM Finance Director Adrian Erlangga Sjamsul said that demand coming from investors during roadshows overseas reached $1.1 billion, or an oversubscribed of about four times.

He said that the bonds, with coupon rate of 7.125 percent, will be listed on the Singapore Stock Exchange, and will start trading Wednesday.

ABM will use proceeds from the bonds offering to repay debts as the company seeks to lower gearing ratio, and the remainders will among others be used to help finance acquisition of new coal mines to expand its coal reserves.

ABM has allocated $100-200 million to finance the acquisition of new coal mines. The company is currently making assessment on seven target coal assets in East and South Kalimantan provinces.

The company plans to increase coal reserves by 50 million-100 million tons, from its current reserves level of around 300 million tons.

The company, which obtains about 75 percent of revenue from coal and the remainder from logistics and power plant business, plans to produce 9 million tons of coal this year. (*)