Berau Coal to issue $600 million bonds

PT Berau Coal Energy (BCE), a subsidiary of Recapital Investment Group, will issue global bonds worth about US$600 million to finance expansion and repay the company?s debts, Kontan reported on Thursday.

Rosan P. Roeslani, the chairman of Recapital Investment, said that BCE had named three financial companies including Credit Suisse, Goldman Sachs and PT Danatama Makmur to help handle the issuance of the bonds.

Rosan said that BCE would carry out a road show in Hong Kong, London and New York to promote the sales of the bonds to global investors. ?The road show will be carried out beginning April 19,? Rosan added.

BCE is the indirect owner of 90 percent shares of East Kalimantan coal mining firm PT Berau Coal (BC), which is the country?s number five coal producer with 2009 production of 14.3 million tones. In 2010, BC expects to produce 16-17 million tones of coal. (*)