Merdeka Copper Owned By Conglomerates Edwin Soeryadjaja And Sandiaga Uno Issues IDR 4 Trillion Bonds, Funds For Paying Debts And Fulfilling Working Capital Of Subsidiaries

Illustration. (Photo: Doc. Antara)

JAKARTA - PT Merdeka Copper Gold Tbk is planning to issue bonds worth IDR4 trillion. This bond is a phase III issuance of the company's third sustainable bond target of IDR 9 trillion.

Citing the company's offer document, Friday, August 12, the mining company from the Saratoga Group owned by conglomerates Edwin Soeryadjaya and Sandiaga Uno divided the bonds into three series.

Among them, series A Rp1.47 trillion with an interest rate of 5.5 percent. Then series B Rp1.73 trillion with 8.25 percent interest and series C Rp797.64 billion with 9.5 percent interest.

The document explains that these bonds have received an effective issuance permit on February 22, 2022. Furthermore, the company will start the public offering period on August 25-29 2022.

The listing of these bonds on the Indonesia Stock Exchange will take place on September 2, 2022.

In detail, Merdeka Copper will use the proceeds from this bond issuance to pay off several debts. In detail, 38 percent is for the repayment of continuous bonds II phase II of IDR 1.5 trillion which will mature on November 25, 2022.

Approximately 37 percent for payment of principal debt under a revolving facility agreement of 100 million US dollars to United Overseas Bank Limited. As much as 19 percent for PT Bumi Suksesindo (BSI) in order to pay a debt of 50 million US dollars to The Hongkong and Shanghai Banking Corporation Ltd.

Then four percent was used by BSI to pay debts to ING Bank amounting to US$10.9 million and the remaining two percent to fulfill BSI's capital expenditures from exploration activities for the Tujuh Bukit copper project.

As additional information, the company appointed Indo Premier Sekuritas, Sucor Sekuritas, UOB Kay Hian Sekuritas, Aldiracita Sekuritas Indonesia, and Trimegah Sekuritas as the underwriters for this bond issuance. Meanwhile, PT Bank Rakyat Indonesia (Persero) Tbk will act as the trustee.