ABMM Issues US $ 400 Million Global Bond


To fund refinancing or refinancing and general needs, PT ABM Investama Tbk (ABMM) plans to issue global bonds of US $ 400 million.In a press release in Jakarta, yesterday it was stated that the global bonds have an interest rate of 9.5 percent and will mature in 2026.

The coal mining company said the bonds would be guaranteed unconditionally and irrevocably with company guarantees.In addition, these debt securities are fully guaranteed by a corporate guarantee.The company will disclose in more detail regarding the plan to use the proceeds from the issuance of debt securities no later than two weeks before the issuance of the debt securities.

The issuance of debt securities will increase liquidity and extend the maturity period of the debt so that the company can maintain its liquidity.The company also strives to make the debt securities to be issued more profitable than the 2022 notes, so as to provide flexibility for the company’s operations and finances.The company also has not disclosed the original purchaser of this bond issuance.Information regarding this initial buyer will be informed during the bookbuilding period.

Previously, in 2017, ABM Investama had issued global bonds of US $ 300 million with a term of five years.This US dollar bond has an interest rate of 7.12% with a coupon payment term of twice per year.The global bond is valid from 1 August 2017 and will mature on 1 August 2022.