Breaking News
Home » General » Capital » Bumi to launch rights issue following debt restructuring; sets higher production in 2017

Bumi to launch rights issue following debt restructuring; sets higher production in 2017

JAKARTA ( Bumi Resources Tbk (IDX:BUMI) announced its plan on Thursday (Dec. 8) to launch launch rights issue with a value of Rp26 trillion.

The plan follows recent agreement with its creditor to restructure its debts worth Rp135.78 trillion through debt-to-equity conversion.

Under the plan, Bumi will issue 29.1 billion units of new shares at a price of Rp926.16 per share. With the shares amount, the company expects to raise Rp26.9 trillion in fresh funds.

The price of the rights issue was set given its net equity of US$4.26 billion, the company’s finance director Andrew Beckham said at a press conference on Thursday.

The rights issue is scheduled for June 30, 2017, pending on approval of the capital market regulatory body.

Under the deal with creditors, the company restructure its debts of US$2.44 billion and converted US$1.81 billion into equity. The remaining US$639 million will be exchanged through mandatory convertible bonds (MCB) in the period of seven years.

At the same occasion, Bumi Resources plans to raise its coal production next year, taking advantage of uptrend coal prices.

Next year, the company plans to produce 100 million tons of coal, up from 86 million tons this year. The production is contributed by its three subsidiaries, including Kaltim Prima Coal (KPC). (*)

Check Also

Indonesia’s 2018 realized coal production far higher than target

JAKARTA ( – The Indonesian Energy and Mineral Resources Ministry has revealed that the country’s ...

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.