Prime Dig Pte Ltd, wholly owned subsidiary of Indonesia's second largest coal mining contractor PT Bukit Makmur Mandiri Utama (BUMA), has paid US$18.5 million interest of guaranteed senior notes issued on November 2 2009. BUMA is wholly owned by PT Delta Dunia Makmur Tbk (DOID).
A source familiar with the matter said Prime Dig has paid the notes interest on November 3 2010 to bond holders, which is in line with schedule payment as mentioned in the financial statement ended on September 30 2010.
"Prime Dig's notes are also charged with withholding tax. In total, the notes are charged with an effective interest of 14.1%," the source said.
Prime Dig issued 11.75% guaranteed senior notes on November 2 2009 amounting to US$315 million due on 2014. The proceed was used to refinance the loan facility previously obtained from Sumitomo Mitsui Banking Corporation. Prime Dig must pay the interest on May 3 and November 3 every year.
As of September 30 2010, BUMA has paid Rp65.05 billion in relation to interest. The amount reflects a 20% effective tax rate that is incurred to comply with article 26 of the Indonesian Tax Regulation which became effective on January 1 2010.
Disclosure: No position at the stock mentioned above.
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