JAKARTA (TheInsiderStories) – Indonesia’ gold producer, PT J Resources Asia Pasifik Tbk (IDX: PSAB) offered local bond around Rp500 billion (US$35.46 million), said the company today (09/10). The notes have tenure three years with a fixed coupon rate 10.50 percent per year.
PT Pemeringkat Efek Indonesia assigned an idA rating to the bond with the guarantor PT BNI Sekuritas. The public offering period set at Sept. 20, allotment Sept. 23 targeting listing at Indonesia Stock Exchange on Sept. 26. The proceeds from the bond issuance will be used by J Resources to pay off part of the loan to its related partis PT Bukot Makmur Widya.
Early of this year, the company announce to issue 2.64 billion new shares or 9.09 percent of company’ capital through private placement scheme to raises Rp543 billion. The planned has get approval from the shareholders on Feb. 26.
But, the planned it will most probably stumble with Indonesia Stock Exchange regulation about minimum free-float shares. Recently, J Resources’ public shares is 7.5 percent and after the private placement will be diluted to 6.82 percent.
The current regulation obliges listed-company to have minimum 7.5 percent public shares. No further information on this program.
This year, the miner budgeted capital expenditure US$300 million to build two gold mines, namely the Pani mine in Pohuwato Regency, Gorontalo Province and the Doup mine in Bolaang Mongondow Regency, North Sulawesi Province. According to J Resources director Edi Permadi, part of the sources funds for the funding from the private placement.
He revealed, there are now several companies interested in executing J Resources shares from domestic and abroad. He added, “Hopefully within a few months there will be (investors) coming in, because we need the funds for this year.”
J Resources is an Indonesia-based holding company listed on the Indonesian Stock Exchange that operates, mines, explores, and invests in the gold mining sector via its operating subsidiary, PT J Resources Nusantara. The miner currently owned four operating mines. The entire portfolio is located in Indonesia with the exception of the Penjom Mine which is located in Malaysia.
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