JAKARTA (TheInsiderStories) – Indonesian coal mining company, PT Bayan Resources Tbk (IDX: BYAN) plans to issue global notes of US$600 million for refinancing and working capital, said the management on disclosure information on Thursday (11/21).
The notes will be listed on Singapore Exchange Securities Trading Limited after getting approval from shareholders’ meeting on Dec 30, 2019. The company will guarantee its 13 subsidiaries to support the issuing of 7-year tenor-notes with a 10 percent interest rate.
Furthermore, corporate action will increase the company’s assets by 52.13 percent to $1.75 billion. The liability will also add by 126.9 percent to $1.07 billion.
Meanwhile, until the third quarter of 2019, the miner booked revenue of $1.14 billion, jumped by 8.06 percent from the previous year of $1.24 billion. As a result, Bayan’s current period profit was $219.17 million, down 46.33 percent from $408.38 million last year.
On the other hand, Bayan had signed an agreement of coal supplies with Bangladesh-China Power Company Limited (BCPCL). This agreement has a 10-years tenor with $1 billion of investment. BCPCL is a joint venture company between North-West Power Generation Company Bangladesh Limited (NPGCL) and China National Machinery Import and Export Corporation. The first coal delivery starting June 2020 and has an extension until 10 years later.
“Bayan is so honored to become coal supplier to Payra Thermal Power Plant,” said President Director of Bayan Low Tuck Kwong.
In the agreement, the miner agreed to supply coals to Payra with capacity of 1,320 megawatts (MW). Around 23 million tons (MT) of coals with total price of $1 billion will be delivered to the plant within 10 years contract.
The plant has been built in Kalapara Upazila, Distrik Patuakhali, South Bangladesh. On March 19, 2015, a deal was signed between NWPGCL and the CMC to set up the Payra Power Plant.
The plant will consist of two units, each with a capacity of 660 MW with the estimated cost is around $1.56 billion. The first unit will come into commercial operation on December 2019. Previously, Bayan decided to distribute dividend of $300 million or 55.31 percent of net profit of 2018.
Listed on the Indonesian Stock Exchange in 2008, Bayan is engaged in surface open cut mining of coal mines primarily located in East and South Kalimantan. It has a 90 percent interest in its largest producing asset at Tabang, which will contribute around 80% of its total production volume of up to 28 MT of coals in 2018.
Bayan’ founder Kwong is the largest shareholder with a 51.6 percent stake, Korea Electric Power Corporation (KEPCO) owned 20 percent through its subsidiaries and PT Sumber Suradaya Prima owns 10 percent. While the management holds a 14.5 percent stake and the balance is publicly owned.
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