London-listed Asia Resource Minerals plc (ARMS) stated on Wednesday that the company had selected Barclays, Citigroup and Standard Chartered Bank as initial purchasers of the obligation launched by Berau Capital Resources II Pte. Ltd., a wholly owned subsidiary of PT Berau Coal Energy Tbk (Berau). Optimistically, the best coupons will be released on August 21th this year to enhance the refinancing after the redemption of Berau’s current $450 million obligation.
Different from the outstanding obligation rate due 2015 at 12.5%, the same amount of obligation will be charged fixed rate 12% yearly that will be paid per semester until its due date in 2019. After a whole agreement from the shareholders today in Sampoerna Strategic North Tower, the management will take the necessary works needed to make this refinancing going well so that the company can keep run the mining business.
Amir Sambodo, CEO of ARMS told Petromindo.com: “We are never directing to a force majeure status. Otherwise, we are maintaining the existing margin while give a serious stress on cost-efficiency”. While mentioning 5% fuel consumption efficiency achievement this semester, the firm also confirm that 14 mt production until the end of this July is on the right run rate. “The government had given production agreement indication at 24.2 mt and we are still negotiating for the exact cap”, he added