Enercoal offers $300m worth of convertible bonds

Enercoal Resources Pte. Ltd, a subsidiary of Indonesia`s largest coal producer PT Bumi Resources Tbk, is offering US$300 million convertible bonds due in five years.

 

The bonds could be converted into treasury stocks at a price of Rp2,362.50 per share, Bumi President Director Ari S. Hudaya said in a report to the Surabaya Stock Exchange on Tuesday.

 

He said bond holders could convert the bonds into treasury stocks after 40 days of issuance until 10 working days prior to their maturity.

 

If the bonds were not converted into treasury stocks, Enercoal would settle the bonds 148.92 percent higher than their initial value and the bonds were issued at an annual yield of 8.125 percent, Ari said.

 

The company would use the proceeds from the bond issue to refinance its debts and to strengthen its working capital, Ari added. (*)