Buma secures US$250 million accordion facility from BCA

PT Bukit Makmur Mandiri Utama ( Buma ), a Jakarta-based provider of mining services in Indonesia and Australia, has secured a US$250 million equivalent accordion credit facility from PT Bank Central Asia ( BCA ).

The multi-currency facility, which includes up to US$75 million and 2.88 trillion rupiah ( US$175.2 million ) from BCA, builds on Buma’s existing syndicated financing as part of its broader strategy for financial diversification.

Initially secured in December 2023 with PT Bank Negara Indonesia ( Persero ) ( BNI ) and later expanded with PT Bank Mandiri ( Persero ), the expansion of Buma’s syndicated financing facility demonstrates the robust confidence of Indonesia’s leading banks in the company’s track record on operations and growth, Buma says. With BCA joining the syndication, the total facility is upsized to US$1 billion.

The initial US$750 million syndicated financing facility was strategically structured into two tranches, allowing Buma to refinance its debts and loans, thus providing financial flexibility until 2029. The loan will also be used to fund a transformative acquisition as part of the company’s efforts to diversify its business towards more sustainable practices.

“The accordion facility from BCA equips Buma with strengthened financing, enabling Buma to implement transformative actions that capitalize on current market opportunities swiftly,” says Buma director Silfanny Bahar. “This facility also reaffirms our commitment to accelerating progress and creating meaningful value for our stakeholders.”

In June 2024, Buma International acquired Atlantic Carbon Group and became the leading producer of ultra-high-grade anthracite ( hard coal ) in the United States, further strengthening the group’s global footprint in the mining industry.

In 2023, Delta Dunia Group, Buma’s parent company, expanded its portfolio with the addition of two new subsidiaries: PT Bukit Teknologi Digital ( BTech ) and PT Bisa Ruang Nuswantara ( Biru ). BTech develops AI deep learning technologies to improve operational efficiency, reduce emissions, and minimize cccupational health and safety operational risks, while Biru is a social enterprise dedicated to education, vocational schools, and fostering circular economy.

Source : theasset.com