Wednesday, June 12, 2013

Borneo Lumbung to pay off debt to Standard Chartered this year

PT Borneo Lumbung Energi & Metal Tbk (BORN) expects to sell 20% stake in subsidiary PT Asmin Koalindo Tuhup (AKT), issue bonds, and a rights issue to pay off debt to Standard Chartered Bank consortium which remaining USD 900 million this year.

Alexander Ramlie, Director of Borneo Lumbung Energi & Metal, said that 20% AKT stake selling to POSCO - a Korean company targeted for completion this year.

In addition to AKT stock sell, BORN will issue bonds with proceeds target USD 300 to 400 million. The proceeds will also be used to pay off the debt.

The issuance of the bonds is waiting the completion of AKT stock sell and the completion of separation of Bakrie & Brothers from Bumi Plc scheduled on July 2013.

The company is also exploring the issue of new shares (rights issue), this corporate actions are still waiting for coal prices trend. Current coal price is USD87 per tonne, this is far below the economic price of approximately around USD 110 per tonne.

for Indonesia market Summaries 12 June 2013

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