PTBA delays $2.5b global bond

IDX-listed coal giant PT Bukit Asam Tbk (PTBA) has delayed its planned global bond offering worth US$2.5 billion this year as construction of its power plant projects have been postponed, Kontan reported on Thursday.

The paper quoted PTBA Finance Director Orias Petrus Moedak as saying that out of the allocated Rp 2 trillion capital expenditure this year, only about 25 percent have been spent as per end June.

He said that much of the funds were merely used for financing mining operations as investment activities have been delayed. He pointed out as example that construction of the planned 2x620 MW PLTU Sumsel 8 coal-fired power plant in Banko Tengah, South Sumatra, has been delayed probably to end of this year.

PTBA announced late last year its plan to issue global bonds worth $2.5 billion to help finance a number of power plant projects as the company aims to have a combined power capacity of up to 5,000 MW over the next several years. Aside from PLTU Sumsel 8, other power plant projects on the pipeline include 2x300 MW PLTU Peranap, 2x300 MW PLTU Sumsel 6, 2x40 MW PLTU Halmahera Timur, 2x350 MW PLTU Kuala Tanjung.

Meanwhile, IDX-listed coal mining and energy company PT ABM Investama Tbk on Tuesday saw its $300 million global bond offer was oversubscribed by up to four times. (*)