Jakarta (TheInsiderStories) – An Indonesia’ energy company, PT Indika Energy Tbk (IDX: INDY) has buyback bond worth of $215 million, the management said today (08/22). The bond is part partial redemption of notes have been issued in 2013 worth of $500 million and will mature in 2023 with coupon rate 6.375 percent.
The company’ spokesman Adi Pramono explained, its subsidiaries, Indo Energy Finance II BV has issued a partial repurchase notice to bondholders on July 17 and has been closed on August 16.
Indika set a redemption price of 102.125 percent plus accrued interest for the buy back program. With this transaction, the company hope have ability to improve the financial performance with more competitive financing.
Last July, the energy producer has pocketed loan facilities worth of $150 million from several banks for buyback plan. These loans come from Standard Chartered Bank (Singapore) Limited, Citibank NA Jakarta Branch, and PT Bank Mandiri Tbk (IDX: BMRI) as arranger and lender.
The loan facility was carried out by Indika together with its subsidiaries PT Indika Inti Corpindo, PT Tripatra Engineers and Constructors, PT Tripatra Engineering, and Tripatra (Singapore) Pte. Ltd. as initial guarantor.
Based on the company’ data, INDY has issued bonds worth of $265 million that will mature in 2022, $500 million will mature in 2023 and $575 million mature in 2024.
Since last year, Indika aggressively acquired energy companies. Last July, through its unit the company had acquired 15 percent or 2,63 million shares of PT Multi Tambangjaya Utama from Singapore’ Prime Empire Investments Pte Ltd. The value of the transaction worth $9.9 million
100 percent MUTU’ share owned by its two units, PT Indika Indonesia Resources (85 percent) and Indika Capital Investments Pte. Ltd. (15 percent). Multi Tambangjaya Utama has been operating since 2012 and has total assets $69.43 million as of March 31, 2019.
Then, Indika Energy through its unit, PT Indika Mineral Investindo (IMI) had also invested AUS$639,459.80 ($456,000) in Nusantara Resources Ltd (ASX: NUS) and owned 19.9 percent at the Australian miner. The miner has acquired 2.78 million shares of Nusantara Resources with average price AUS$0.23 per share.
IMI entered the miner through a private placement. Nusantara Resources will use the funds to continue the development of the Gold Awak Mas Project in Toraja district, South Sulawesi. The block has an estimated ore of 1.1 million ounces and resources of 2 million ounces.
On Dec. 12, 2018, IMI has entered into a share participation agreement with Nusantara Resources. Earlier, IMI has bought 33.4 million shares at a price of AUD$23 cents per share with total transactions reaching AUD7.68 million.
This investment is a strategic step for Indika to diversify its business into other mining sectors outside of coal. The management believes that the coal business is still prospective and is the company’ mainstay, even though prices on the world market often fluctuate.
Currently, its subsidiaries manage coal producer PT Kideco Jaya Agung, located in Paser, East Kalimantan in the land areas 50,921 hectares. Indika owned 45 percent in this company that was established in 1982 and the contract will expire in 2023.
Estimated coal reserves owned by Kideco are 422 million tons of coal with 50 consumers in 16 countries. The main destination to China and India.
At the first quarter of this year, the coal miner’ net profit declined 79.95 percent to $11.7 million from prior year amounted to $58.38 million. The company’ sales also fell 13.39 percent on an annual basis to $700.73 million.
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