Bayan plans to issue $600m notes

Petromindo|Dasir

IDX-listed coal mining firm PT Bayan Resources Tbk plans to issue debt notes worth up to US$600 million to repay maturing debts and to help finance working capital.

The company said in a statement Monday that it would provide corporate guarantee to the planned notes, to be issued by its Singapore-registered subsidiary. The size of the notes will be equal to 318.9 percent of Bayan?s equity. The notes will be listed on the Singapore Stock Exchange.

Meanwhile, Bayan President Director Chin Wai Fong was quoted by Kontan as saying that the company plans to hold a shareholders meeting on August 23 to seek approval for the planned notes, which will have maximum interest rate of 10 percent, and maturity period of seven years.

Bayan this year hopes to obtain revenue of US$600 million-$800 million, up from $555 million last year. The company plans to produce 16 million-18 million tons of coal this year, and has set coal price target of $38-$42 per ton.

The company this year plans to allocate $50 million-$71 million for capital expenditure primarily for the development of infrastructure facilities at its Tabang coal concession in East Kalimantan.

Editing by Reiner Simanjuntak