ABM pays debts with money from IPO
Tuesday, January 17 2012 - 03:06 PM WIB
IDX-listed coal mining company PT ABM Investama Tbk said that it had paid its debt to Bank DBS Singapore at the amount of US$13 million and to Bank Permata at Rp 225 billion using the money raised from its initial public offering (IPO).
"In accordance with previous plan, we allocated about 24% of the IPO funds to pay debts to the company?s two banking institutions. Most of the loans are not matured yet, we just accelerate debt repayment to meet our commitments to our stakeholders, especially investors,? Director of PT ABM Investama, Andi Djajanegara said, adding that ?accelerating debt payment will also reduce the interest of loans and improve capital structure of ABM so that the company could use the funds to strengthen business of our subsidiaries.?
ABM Investama (ABM) has 5 subsidiaries, namely PT Reswara Minergi Hartama (coal producer & port owner), PT Cipta Kridatama (mining contracting), PT Sumberdaya Sewatama (electricity solutions), PT Sanggar Sarana Baja (engineering services) and PT Cipta Krida Bahari
ABM Investama, an affiliate of PT Tiara Marga Trakindo group, officially listed its shares at the Indonesian Stock Exchange (IDX) on December 6 following a successful IPO, under which it sold 20% of its stake for Rp 2.1 trillion.
Editing by Adianto P. Simamora