BUMA Launches Second Rupiah Bond Offering of up to Rp1 Trillion to Further Strengthen its Financing Diversification Strategies
18 September 2024
PT Bukit Makmur Mandiri Utama (BUMA), the principal subsidiary of PT Delta Dunia Makmur Tbk (“Delta Dunia Group”, IDX: DOID), announced the BUMA II 2024 Bond Offering with a principal value of up to Rp1 trillion. The transaction underscores BUMA's continued commitment to diversifying the company's financing strategies and strengthening the company's capital structure.
The BUMA II 2024 Bond Offering includes three series. Series A Bonds with a duration of 370 calendar days, Series B Bonds with a duration of 3 years, and Series C Bonds with a duration of 5 years, starting from the issuance date. BUMA has appointed PT BNI Sekuritas and PT Trimegah Sekuritas Indonesia Tbk as the Joint Lead Underwriters of the Bond Issuance. The initial offering period starts from September 18, 2024, to September 24, 2024.
The BUMA II 2024 Bond Offering is the second IDR-denominated bond offering from the company, following the issuance of BUMA 2023 Series I Bonds (BOLD). The BUMA II 2024 Bond Offering will further diversify the company’s financing strategy, which consists of both USD and IDR bonds, conventional and sharia bank loans, and leasing financing schemes. The strategy strengthens the company’s financial resilience, enhances its ability to navigate market volatility, and broadens its financial base, placing the company in a better position for future growth.
Indra Kanoena, President Director of BUMA, said, “Building on our first bond issuance last year, the BUMA II 2024 Bond Offering is an important step in further diversifying our funding and debt management. This bond offering not only strengthens our financial position but also provides more flexibility in supporting our long-term business strategy. The company’s second bond offering in Rupiah also reaffirms our focus on business in Indonesia. We are committed to strengthening our business in the mining sector, maintaining solid financial management, and upholding strong credit metrics while continuing to provide added value to stakeholders, and supporting the sustainable development of the mining industry in Indonesia, Australia, and the US."
The proceeds from this bond offering will be allocated to repay obligations of BUMA I 2023 Series A, maturing on January 8, 2025, amounting to Rp422,910,000,000 or approximately 42.29%. This step reflects BUMA's commitment to aligning its debt maturity schedule and ensuring effective and sustainable debt management.
Furthermore, 28.86% will be used for capital expenditure to purchase heavy equipment. The remaining funds from this bond issuance will be allocated to support BUMA's operational activities in Indonesia and Australia. With a proven track record in robust cash flow management, BUMA is set to effectively control costs through innovative technology utilization and expanding its business in line with the strategic vision. This bond offering is expected to increase the company's production capacity, operational efficiency and strengthen BUMA's position as a leader in the mining services industry.
BUMA successfully obtained an A+ rating from PT Pemeringkat Efek Indonesia (Pefindo) and Fitch Ratings, reflecting the company's excellent credit quality. This rating confirms BUMA's financial strength and ability to fulfil its debt obligations with very low risk, demonstrating high stability and reliability in its financial management. In addition, the ratings obtained from the two prestigious rating agencies have further solidified BUMA’s position in the industry and highlight the strength of its operating management.
“As one of the leading mining services companies, we need to stay vigilant in facing unforeseen challenges and capitalizing on opportunities in the future to be able to continue providing comprehensive services to some of the largest and longest-running mines in Indonesia. With more diverse funding sources, we will have greater opportunities to accelerate further growth in the industry,” Indra concluded.