BUMA Secures Rp1 Trillion in Oversubscribed Second Rupiah Bonds Offering, Reflecting Strong Investor Confidence

PT Bukit Makmur Mandiri Utama (BUMA), the principal subsidiary of PT Delta Dunia Makmur Tbk (“Delta Dunia Group”, IDX: DOID), announced the successful issuance of the BUMA II 2024 Rupiah Bonds (BUMA II 2024 Bonds) with a total value of Rp1 trillion. The bonds was oversubscribed by 1.4x within days, indicating strong investor demand and confidence in BUMA’s financial stability and growth prospects. With more investors committed to longer-term tenors, BUMA has enhanced its ability to effectively manage its debt maturity profile.

The BUMA II 2024 Bonds were issued in three series:

• Series A with a nominal value of Rp251,035,000,000 at a fixed interest rate of 7.25% per annum, maturing in 370 calendar days.
• Series B with a nominal value of Rp332,710,000,000 at a fixed interest rate of 9.25% per annum, maturing in 3 years.
• Series C with a nominal value of Rp416,255,000,000 at a fixed interest rate of 9.75% per annum, maturing in 5 years.

The BUMA II 2024 Bonds Offering, featuring a competitive blended cost, attracted a wide range of reputable pension funds, mutual funds, insurance companies, asset managers, and banks. With a greater proportion of investors committing to longer-term tenors, including an anchor investor committing to the five-year tenor, BUMA is well-positioned to align its financing strategy with its equipment lifespan.

Indra Kanoena, President Director of BUMA, commented, “The strong market response to BUMA II 2024 Bond Offering reinforces confidence in BUMA's strategic direction, robust cash flow management, and credit profile. This bonds issuance allows us to further diversify and solidify our financial foundation, driving growth in our business while strengthening our position as a leading mining service provider and advancing toward becoming a diversified global mining company.

Proceeds to Manage Debt Maturity Profile and Fuel Future Growth

42.29% of the proceeds, amounting to Rp422,910,000,000 is allocated to repay obligations of BUMA I 2023 Series A, maturing on January 8, 2025. This allocation underpins BUMA's commitment to aligning its debt maturity schedule and ensures effective and sustainable debt management. Additionally, 28.86% of the funds will be used for capital expenditures to purchase heavy equipment, enhancing BUMA's production capacity and operational efficiency. The remaining 28.85% will support BUMA's ongoing operational activities, enhancing the company’s ability to manage cash flows and control costs effectively.

The successful issuance of BUMA II 2024 Bonds has further diversified 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.

“The strong support from our investors gives us the confidence to pursue greater opportunities for sustainable growth. With a diversified financing base, we are well-positioned to stay on course with our strategic transformation” Indra concluded.

The BUMA II 2024 Bonds received an A+ rating from PT Pemeringkat Efek Indonesia (Pefindo) and Fitch Ratings. PT BNI Sekuritas and PT Trimegah Sekuritas Indonesia Tbk were the Joint Lead Underwriters for the bonds issuance.