Bumi Resource to issue bonds to finance Arutmin acquisition
Monday, April 8 2002 - 03:05 AM WIB
Natural resources-based PT Bumi Resources will soon issue multi-currencies bonds worth US$103.95 million and Rp 470 billion to finance the acquisition of coal mine operator PT Arutmin Indonesia, Bisnis Indonesia reported on Monday.
Bumi?s financial director, Eddie J. Soebari, said Bumi and Bank Mandiri had signed an agreement on the issuance of the bonds. ?The company has also signed an additional agreement with PT Arutmin Indonesia,? he added.
Late last year, Bumi Resources agreed to purchase 80 percent of PT Arutmin Indonesia shares. The company said that the acquisition would be financed by loan worth US$103.95 million from Bank Mandiri.
Eddie, however, said that Bank Mandiri preferred Bumi to issue bonds in acquiring the fund to finance the acquisition. ?The issuance of the bond is based on the recommendation of Bank Mandiri and PT Rifan Financindo Assets Management,? Eddie added. (*)