Coal mining contractor Bukit Makmur Mandiri Utama (Buma) is targeting Rp1trn (US$65m) from a three-tranche rupiah bond offering to diversify its funding sources, according to a press release.

It is planning to sell tranches with tenors of 370 days, three years and five years to insurance companies, pension funds, mutual funds and banks which showed support for Buma's Rp1.5trn maiden bond issue last year.

"The rupiah bond market remains strong, and we are confident that our return with the second bond offering will further broaden the base of institutional investors who have supported us in the past," said Silfanny Bahar, director of Buma, in an email response.

The offer opened on September 18 and closes on September 24. Pefindo and Fitch have both assigned A+ ratings to the notes. BNI Sekuritas and Trimegah Sekuritas are the lead underwriters. Around 42.29% of the funds raised from the bonds will be used to repay Rp422bn of bonds issued in 2023 which are maturing this year, 28.86% for capital expenditure for the purchase of heavy equipment and the rest for working capital for operations in Indonesia and Australia.

The funds raised will be used to drive growth, including increasing capital for business development and strengthening operational efficiency.

Source: Ifre.com