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BUMA Strengthens Financial Position with Early Redemption

PT Bukit Makmur Mandiri Utama (BUMA), a key subsidiary of PT BUMA Internasional Grup Tbk, has made significant strides in financial management by completing the early redemption of its remaining $212.25 million of 7.75% Senior Notes due in 2026. This strategic move not only demonstrates BUMA's proactive approach toward managing liabilities but also enhances its liquidity and capital structure flexibility, thereby strengthening its credit profile and boosting investor confidence.

A Step Towards Enhanced Financial Flexibility

Initially issued in February 2021 for a total principal amount of $400 million, the 7.75% Senior Notes underwent amendments in subsequent years, specifically in June 2022 and March 2024. With this latest redemption, all outstanding bonds have been fully settled, meaning that interest on the Notes has ceased to accrue, marking a significant milestone in BUMA's journey toward financial stability.

The redemption was primarily financed through an existing syndicated loan facility from several leading Indonesian banks, including PT Bank Negara Indonesia, PT Bank Mandiri, and PT Bank Central Asia. This move further underscores the strong institutional confidence in BUMA and its continued access to liquidity in the market.

Remarks from Leadership

Silfanny Bahar, Director of BUMA, commented on this development, stating, "Retiring the 2026 Senior Notes mitigates our near-term repayment risks and strengthens our liquidity position. We reaffirm our disciplined approach to capital allocation. The Notes previously supported our strategic initiatives, and we extend our gratitude to our bondholders for their trust."

BUMA is dedicated to maintaining a diversified financing strategy that ensures ongoing access to various funding sources, including conventional and sharia-compliant banking facilities, Sukuk, USD and IDR bonds, and leasing options. This balanced financial approach not only fosters greater flexibility but also equips BUMA to seize future growth opportunities.

About BUMA and Its Parent Company

Founded in 1990, PT BUMA Internasional Grup Tbk stands as a globally diversified mining holding company with operations spanning Indonesia, Australia, and the United States. At the core is BUMA, established in 1998 and now recognized as the second-largest coal mining services contractor in Indonesia. BUMA operates under four main pillars: Mining Services, Mine Ownership, Social Enterprise, and Technology.

In 2024, the Group elevated its portfolio by acquiring the Atlantic Carbon Group, which positions them as a leading producer of ultra-high-grade anthracite in the United States. The Group is also diversifying into future-facing commodities, having secured a stake in 29Metals Limited, an Australian-based mining company focused on copper and base metals.

Moreover, BUMA is committed to innovation through PT Bukit Teknologi Digital (BTech), which aims to enhance operational efficiency and minimize emissions through advanced technologies. Simultaneously, PT BISA Ruang Nuswantara (BIRU) serves as its social enterprise wing, focusing on education and vocational training.

With headquarters in Jakarta, BUMA International Group is publicly listed on the Indonesia Stock Exchange and boasts a workforce of over 13,000 employees globally. Recently, the firm was lauded as one of the Top 200 in the FORTUNE Southeast Asia 500, reflecting its strong position in the market based on revenue.

By continuing to execute strategic financial decisions such as the early redemption of its senior notes, BUMA showcases its commitment to strengthening its financial health and standing tall in the competitive mining sector.