ABM obtains shareholders? approval to issue global bonds
Saturday, July 8 2017 - 05:01 AM WIB
IDX-listed integrated coal mining company PT ABM Investama Tbk obtained on Friday shareholders? approval to issue global bonds later this year, Kontan reported on Saturday.
The paper said that the company plans to raise around US$450 million from the global bond issue, of which around $297 million will be used 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 Finance Director Adrian Erlangga said that the company will hold roadshows in the US, Europe and Asia to market the planned bonds, which will be listed on the Singapore Stock Exchange.
ABM has allocated $100-200 million to finance the acquisition of new coal mines. The company is currently make assessment on seven target 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. (*)