Bumi completes rights issue, MCB

IDX-listed coal mining firm PT Bumi Resources Tbk has finally completed its rights issue and mandatory convertible bond (MCB) programs, cutting down significantly its debt level.

According to report filed with the Indonesia Stock Exchange, the new shares and the bonds were mostly subscribed by the company?s creditors as standby buyers. The rights issue and MCB were part of the company?s debt restructuring program.

Bumi Director and Corporate Secretary Dileep Srivastava said Friday that following the completion of the issuances of the new shares and MCB, the company?s debts have now been reduced to US$1.6 billion from $4.2 billion previously.

A lower debt ratio will allow the company to have a cleaner balance sheet and to deliver better profit for investors.

Editing by Reiner Simanjuntak