JAKARTA (TheInsiderStories) – Integrated aluminum company, PT Indonesia Asahan Aluminium (Inalum) has successfully issued global bond worth of US$2.5 billion, said the state own enterprises ministry on Tuesday (05/12). The notes have three tenures 5 year with coupon rate 4.75 percent, 10 years at 5.45 percent, and 30 years with a coupon rate 5.8 percent.
According to SOEs minister, Erick Thohir, in the last two weeks, companies under him, has issued global bonds worth of $3.6 billion. Recently, toll operator, PT Hutama Karya has released $600 million of notes and state lender, PT Bank Mandiri Tbk (IDX: BMRI) with total amount $500 million. PT Bank Negara Indonesia Tbk (IDX: BBNI) is on process to releases Eurobond $2.5 billion in this month.
The miner has received a Baa2 rating from Moody’s Investor Services and BBB- from Fitch. It said, part of the proceeds will use to refinances mature bonds worth of $1 billion and the rest for various strategic projects development.
Inalum in the process to build a Smelter Grade Alumination Refinery in Mempawah, Central Kalimantan with a capacity of 1 million tons per year, South Sumatra Mine Mouth 8, and coal gasification plant project to become DME in Tanjung Enim, South Sumatera. Joined with United Arab Emirates’ miner, Emirates Global Aluminium (EGA), both also plans to build “greenfield smelter” in the country.
In January, both parties has signed an agreement on the project. EGA and Inalum are already cooperating on the potential brownfield upgrade the local miner existing aluminum smelter in North Sumatra, under an deal signed in 2018.
Inalum is an Indonesian state-owned company specialized in aluminum smelting. The company manages the huge potential of electricity generated from the Asahan River in North Sumatera. The company was established in 1976 as joint venture company between the Indonesian government and Nippon Asahan Aluminium Co., Ltd., a consortium of Japanese companies, before it was fully acquired by the government in 2013.
In 2017, Inalum was appointed by the government as the holding company for the state’s mining assets, and the government transferred its equity interests in PT Aneka Tambang Tbk (IDX: ANTM), PT Bukit Asam Tbk (IDX: PTBA), PT Timah Tbk (IDX: TINS), and PT Freeport Indonesia to the company. The miner is 100 percent owned by the government through the ministry of state own enterprises.
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