Bumi seeks to raise $2.65 billion via rights issue, bonds
Wednesday, February 8 2017 - 01:46 AM WIB
Petromindo|Thomas
IDX-listed coal giant PT Bumi Resources Tbk is seeking to raise up to US$2.65 billion in proceeds via rights issue and mandatory convertible bonds (MCB) in July of this year.
Bumi Director and Corporate Secretary Dileep Srivastava said that the plans had been approved by shareholders during an extra ordinary shareholders meeting on Tuesday. The company is now seeking for approval from the capital market authority.
Dileep said that the company plans to launch a rights issue worth $1.99 billion and MCB worth $639 million with a tenor of seven years.
Bumi is struggling to reduce its huge debt load of $4.2 billion to $1.6 billion.
Dileep reiterated that the company plans to increase coal production this year to around 93 million tons from 88 million tons last year in the wake of recent coal price recovery. He said that coal price this year is estimated to range between $50 and $60 per ton, higher than last year?s $42-43 per ton.
He said that Bumi?s production cost stands at around $27 per ton, thus providing the company with higher net profit opportunity this year in line with the rise in the price of the commodity.
Elsewhere, Dileep said that Bumi this year will also focus on resolving the debt of its subsidiary IDX-listed mining firm PT Bumi Resources Minerals Tbk (BRMS) worth $600 million. ?The (debt) restructuring of BRMS is one of the strategic priorities. BRMS will also push to start production of its mines,? he said.
He said that trial production of zine at BRMS? subsidiary PT Dairi Prima Mineral is expected this year. He added that BRMS will also push its other subsidiaries PT Gorontalo Minerals and PT Citra Palu in Sulwesi to start production.
Editing by Reiner Simanjuntak