Delta Dunia obtains approval to issue $500m bonds

By Thomas Sembiring

IDX-listed coal mining services company PT Delta Dunia Makmur Tbk has obtained approval of shareholders for its plan to issue bonds worth up to US$500 million to repay debts.

This was said by Delta Dunia Independent Director Errinto Pardede to Petromindo.com on Tuesday following an extra ordinary shareholders meeting in Jakarta. ?The coupon rate will be maximum 10 percent, and the bonds will mature in 2021,? he said.

Errinto said that proceeds will be used to repay debts owed to Sumitomo Mitsui Banking Corporation and CIMB Niaga totaling about $500 million.

According to company prospectus published last week, the global bonds will be issued by Delta?s subsidiary PT Buki Makmur Mandiri Utama.

Editing by Reiner Simanjuntak