May 25, 2010

Bukit Mutiara delays bond issue

Owner PT Recapital Advisors Sandiaga S. Uno confirmed that PT Bukit Mutiara, 99% owned by Recapital and parent company of PT Berau Coal Energy, delays US$600 million bond issue and awaits for more market situations.  
"The issue process remains goes on. When the market is better, we will enter the bond market," he told reporters today. Bukit Mutiara has mandates Credit Suisse to arrange the bond issue.
Berau Coal, Indonesia's fifth largest coal mining producer, initially plans to issue US$600 million of bond on April 14. The proceed will be used to refinance debt and capital expenditure.
Bukit Mutiara aims to use proceed of bond issue to refinance the companies debt to PT Bumi Resources TBk worth US$300 million and refinance PT Berau Coal’s debt (issued by Empire Capital) $300 millions.
"The bond issue is being talked in the shareholder's level. Credit Suisse is the arranger," said Y.A. Didik Cahyanto, Berau Capital's President Director.
Paralling with this corporate actions, Bukit Mutiara will release arround 18.2 percent their stakes in PT Berau Energy (arround 7 billion shares) by IPO in July or August. 
Credit Suisse, JP Morgan Securites, Recapital Securities and PT Danatama Makmur Sekuritas will help Berau Energy for the IPO’s plan. Berau Coal plans to increase capacity production from 17.8 million tonnes in 2010 to 30 million tonnes in 2014. Didik expects this year the revenues will grow over than 20% from last year Rp8 trillion.  
He said Berau Coal's production capacity will be boosted to 30 million tons of coal in 2014. "We set a production target of 17.8 million tons this year, hence we need capex of US$200 million-US$300 million."

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