Bumi to issue bonds, new shares to refinance debts

PT Bumi Resources, through its subsidiary PT Bumi Investments Pte Ltd, will issue bonds worth about US$700 million to partly finance the company?s debts which are estimated to be worth about U$$700 million.

The seven-year bonds which would have a coupon with a yield rate of 10.75 percent a year would be listed on the Singapore stock exchange, the company said in a statement on Friday.

In addition, Bumi will also issue new shares without pre-emptive rights to help refinance the company?s debts which would also include convertible bonds. The company expects to raise about Rp 360 million from the issuance of new shares.

According to the company?s fist semester financial report ended in June, Bumi had total debts of about US$565.54 million to Credit Suisse, about $146.27 million to JP Morgan Chase, $79.95 million to Zentralbank Osterreich AG.

Meanwhile, the value of convertible bonds issued by the company?s subsidiary Enercoal reached a total of $708.23 million. (*)