JAKARTA, Feb 3 (Reuters) - Indonesian coal miner PT Berau Coal Energy Tbk is planning to issue $500 million of bonds, at a interest rate of 9 percent, to refinance its debt and fund capital expenditure, the firm said in a statement on Friday.
Indonesian companies are readying themselves to jump into the dollar bond market to take advantage of the foreign money they expect to flood the country after Moody’s was the second ratings agency to upgrade the country to an investment grade status last month.
Berau Coal will hold an extraordinary general meeting on March 6 for shareholder approval for the notes, which will have a maximum fixed interest rate of 9 percent and a semi-annual coupon.
Berau Coal, controlled by Indonesia-based private equity firm Recapital Advisors, has not yet appointed a financial advisor on the deal. (Reporting by Andjarsari Paramaditha; Editing by Neil Chatterjee)