Golden Energy raises debt ceiling of coal unit

IDX-listed coal mining company PT Golden Energy Mines Tbk has increased the debt ceiling of its indirect coal mining subsidiary PT Bungo Bara Utama to support construction of mining infrastructure facilities.

The company said in a filing with the Indonesia Stock Exchange on Monday that the debt ceiling has been increased to Rp 200 billion from Rp 26 billion as set in the initial lending agreement. The two companies had signed on March 9 agreement on the revision of the initial lending agreement. The loan, which will mature at the end of 2018, carries annual interest rate of 12 percent.

Golden Energy indirectly owns 99.99 percent of Bungo Bara Utama, a coal mining firm with concessions in Jambi Province, via subsidiary PT Kuansing Inti Makmur.

Meanwhile, Bisnis Indonesia said that Golden Energy saw its net profit last year surged by 1,605.44 percent to US$34.45 million from $2.02 million in the previous year. Net sales grew by 8.2 percent to $383.34 million from $353.19 million. Meanwhile, cost of sales increased by 1.32 percent to $246.16 million.

Editing by Reiner Simanjuntak