Adaro seeks $1.25b bank loan for debt refinancing

IDX-listed coal giant PT Adaro Energy Tbk is seeking bank loans worth up to US$1.25 billion to refinance part of its debts this year, Investor Daily reported on Monday quoting a Global Capital report.

The refinancing is made to reduce interest rate burden to allow the company to maintain profit growth, the paper said, adding that Adaro has sought a number of foreign banks to submit 7-year loan offering proposals by the June 9 deadline.

Adaro management was not immediately available for comments. But the paper quoted Adaro Finance Director Davide Tendian as saying recently that the company was seeking for an early debt payment by utilizing its US$828 million cash reserves and bank loans if necessary.

According to the company?s financial report, as of first quarter of this year, Adaro?s debts totaled US$2.16 billion. (*)