PTBA considers issuing global bond
Friday, August 5 2016 - 01:07 AM WIB
IDX-listed coal mining firm PT Bukit AsamTbk (PTBA) is considering to issue global bonds next year to raise funds particularly to help finance a number of power plant projects.
PTBA President Director ArviyanArifin said on Thursday that capital expenditure for next year is estimated at around US$500 million, half of which to be financed internally and the remainders through bank loans or global bond issue.
He explained that if the company could get sufficient bank loans, it may drop the global bond option. He added, however, that it would also depend on the macro-economic condition, which if continues to improve would provide an attractive environment for the company to raise cheaper funds via global bonds.
Arviyan also said that the company?s external funding requirement would depend on progress of a number of planned power plant projects.
He cited as an example that PTBA hopes to be able to start construction of the 2x650 MW PLTU Sumsel 8 coal-fired power plant in South Sumatra in the hope that it could be completed within two years.
?Our funding requirement is primarily for financing power plant projects. There are a number of ongoing projects, and we?re also participating in tender for other projects. If we combined all these (projects) our funding requirement is huge, so we?ll issue global bonds (as an option),? Arviyan said.
He added that with EBITDA of $400 million-$500 million, the company has a capacity to issue global bonds worth up to $2.5 billion.
PTBA is currently participating in tender for coal-fired power plant projects including Sumsel 9 and 10 (each with capacity of 2x600 MW), Banko Tengah (2x600 MW), Peranap (1,200 MW), Kuala Tanjung (2x250 MW), and Halmahera Timur (2x40 MW)
Editing by Reiner Simanjuntak