Merdeka Copper Gold, A Company Owned By The Conglomerate Of Edwin Soeryadjaya And Sandiaga Uno To Issue Bonds Of IDR 1.5 Trillion

Conglomerate Edwin Soeryadjaya together with Sandiaga Uno. (Photo: Instagram @sandiuno)

JAKARTA - A mineral mining company, PT Merdeka Copper Gold Tbk., Will issue bonds with a principal amount of IDR 1.5 trillion. The company with the MDKA stock code will issue sustainable bonds II of Merdeka Copper Gold Phase I in 2021 with a principal amount of IDR 1.5 trillion in two series.

Quoted from the company's prospectus, Wednesday, March 24, it was stated that Series A had a principal amount of IDR559 billion in bonds with a 7.5 percent coupon and a tenor of 367 days after the bonds were issued. Meanwhile, series B has a principal amount of Rp. 940.4 billion with a coupon of 9.85 percent and a tenor of 3 years from the date of issuance.

The bonds were issued without special guarantees. Meanwhile, the bonds are included in the Merdeka Copper Gold sustainable public offering (PUB) II program with a target of funds raised to reach IDR 3 trillion.

Merdeka Copper Gold management explained that the fresh proceeds from the bond issuance will be used to pay off part of the debt and working capital of the subsidiary. In detail, about 23 percent of the proceeds from the proceeds are used to pay the entire principal amount of debt incurred under the US $ 25 million single currency revolving facility agreement dated December 23, 2020.

About 11 percent is used for working capital for the business entity PT Bumi Suksesindo (BSI) to fund the Tujuh Bukit Copper project in order to prepare a pre-feasibility study. Meanwhile, the remaining 66 percent will be used for the working capital of its subsidiaries, including PT BSI, PT Batutua Tembaga Raya (BTR), and PT Batutua Kharisma Permai.

Received an A rating from Pefindo

This bond received an A rating from PT Pemeringkat Efek Indonesia (Pefindo). Acting as underwriters and underwriters are PT Indopremier Sekuritas, PT Sinarmas Sekuritas, and PT Sucor Sekuritas.

PT Bank Rakyat Indonesia Tbk will act as trustee. The bonds will be listed on the Indonesia Stock Exchange on March 29, 2021, with a public offering period on March 23 and 24, 2021.

For information, as of February 2021, MDKA's shareholders consisted of PT Saratoga Investama Sedaya Tbk (SRTG) 19.134 percent. Saratoga is a company controlled by the tycoon duo Edwin Soeryadjaya and Sandiaga Uno.

Then, other MDKA shareholders are PT Mitra Daya Mustika 13.466 percent, Garibaldi 'Boy' Thohir 8.204 percent, PT Suwarta Arta Mandiri 6.333 percent, and the community 52.856 percent.