Credit Suisse, RZB buy Bumi?s $360m share issue

Indonesian listed coal mining giant PT Bumi Resources has issued 1.369 billion new shares for Rp 2,366 (1US$ = Rp 8,920) per share that represent 7.06 percent of its entire shares to strategic investor to raise US$360 million, the company said in statement on Monday.

Bumi said that the strategic investors are Credit Suisse International, which bought 44.4 percent of the total new shares, and Austrian bank Raiffeisen Zentralbank Osterreich AG (RZB)'s unit Moorfields Investments Limited, which bought the rest.

Using the proceeds from the sale, Bumi is expected to slash its debt to US$3.805 billion from $4.165 billion, it said.

Bumi is planning to reduce debts by $1 billion and is targeting to repay $800 million of debts this year alone. (denny)