Kideco plans to issue US$200 million bonds to finance expansion

East Kalimantan-based coal miner PT Kideco Jaya Agung plans to issue bonds worth about US$200 million to finance the company's mining expansion program and acquire several coal mining companies, Investor Daily reported Monday.

"The company is selecting a number of local and foreign securities companies in charge of the bond issuance," an executive of the company told the daily Saturday.

However, the executive who refused to be identified said that the timing for the bond issuance had not been decided.

Kideco operates a coal mining complex in East Kalimantan with annual output of around 20MTPA. The company plans to further expand the company's coal production to meet the surge in the demand from the country's coal-fired power plants.

Samtan Co. Ltd of South Korea controls a 49 percent stake in the company, with local company Andika Group owned by Agus Lasmono, the son of noted businessman Sudwikatmono holding 41 percent. Other local companies, PT Sumber Mitra Jaya and PT Murni Inti Utama, hold five percent of the company's shares, respectively. (*)