JAKARTA. PT Trada Alam Minera Tbk (TRAM) is preparing the issuance of a US$ 250 million global bond to finance infrastructure projects that will be done by a subsidiary of PT Adaro Energy Tbk (ADRO).
TRAM CEO Soebianto Hidayat said that the projects are still awaiting results of a feasibility study (FS). ADRO's subsidiary which signed a contract with TRAM on May 2 is PT Alam Tri Abadi.
As previously reported by IDNFinancials.com, TRAM is also preparing a rights issue as another financing option. In the corporate action, the company plans to issue 100 billion new shares to finance the development of coal mine infrastructure projects. Mr Hidayat said that the validity of the contract will last as long as the mine's agreed age. "It will last as long as the mine," he said.
Mr Hidayat added that the company will wait for the decision made at an Extraordinary General Meeting of Shareholders (EGM), which will be held on July 5. TRAM is open to proceeding wiith both financing options or just one of them.
"There is a possibility that we'll go with both options, depending on the numbers," Mr Hidayat said.
However, Mr Hidayat declined to specify the estimated funds needed to finance the aforementioned projects. "We'll have to wait for the FS to ensure the numbers," he said. (KR/MS)