Delta Dunia says bond offer oversubscribed

Petromindo|Khalsa

In what may be sign of revival of investors? appetite on coal assets, IDX-listed coal mining contractor PT Delta Dunia Makmur Tbk saw its international bond offer oversubscribed, Kontan reported on Wednesday.

The paper quoted Delta Finance Director Eddy Purwanto as saying that during a book building process in Asia, Europe and the US, demand for the bonds with coupon rate of 7.75 percent from investors reached US$2.25 billion, or oversubscribed by 6.5 times.

The paper said that despite the strong demand, Delta only raised $500 million from the bonds offer as the company has earlier obtained loans worth $100 million from Bank of Tokyo Mitsubishi UFJ with interest rate of 3 percent plus Libor.

Delta through its key subsidiary PT Bukit Makmur Mandiri Utama (BUMA) is issuing bonds to raise funds to re-finance debts carrying higher interest rates that will mature in 2019. (*)