ABM Investama Offers US$ 450 Million in Global Bonds to Optimize Coal Business Growth Opportunities
Jakarta, July 7, 2017 – PT ABM Investama Tbk. (ticker code : ABMM) is set to issue global bonds – a maximum of US$ 450 million over a five-year period. The proceeds of the bond issuance will be used to pay off banking loans and support the company in strengthening its coal business.
ABM Investama President Director Andi Djajanegara explained that in line with the recovery of coal prices in global markets, this year the company will increase its coal production capacity. To support this plan, ABM will tap sources of funding that are in line with the company’s strategy, thus, coal price recovery can have optimal impact on the company’s performance.
“The issuance of these Dollar bonds is part of ABM’s effort to improve the funding structure and gain access to additional coal reserves. With this strategy, we are optimistic that ABM’s performance and long-term will solidify,” said Andi after an Extraordinary General Meeting of Shareholders in Jakarta, Friday (7/7).
ABM Investama Chief Financial Officer Adrian Erlangga added that coal prices have the tendency to stabilize in the mid-term. Based on strong operational experience, ABM plans to add the company’s additional reserves by acquiring productive coal mines. ABM currently has two mining sites, namely through PT Tunas Inti Abadi in South Kalimantan and PT Mifa Bersaudara and PT Bara Energi Lestari that operate in Nangroe Aceh Darussalam.
In 2017 ABM’s focus is to continue strengthening its balance sheet by curtailing its debts and improving synergy among subsidiaries and asset utilization and productivity. By emphasizing on more robust capital structure and operational excellence, ABM is expected to be able to survive in the face of a volatile coal commidity market.
With the advantage of operational synergy and sufficient coal reserves, ABM is to have a more sturdy platform and is better prepared to compete in fulfilling coal market demand.
“The acquisition of the coal mines has become ABM’s priority to improve reserves and increase the company’s coal production. As coal prices stabilize and ABM has been conducting successful production efficiencies since 2014, we are confident that the company’s performance will continue to improve,” Adrian added.
Throughout 2016, ABM’s total coal production reached 6 million tons which will continue to be improved up to 14 million tons in 2019. ABM’s coal will be marketed to China, India and to meet domestic demand for coal-fired steam power plants (PLTU) which the government continues to build.