#Indonesia #Jakarta #BUMA Sukuk #Sharia-compliant bonds #Indonesia Sukuk

BUMA Achieves Milestone with Inaugural Sukuk Issuance in Indonesia

On March 20, 2025, PT Bukit Makmur Mandiri Utama (BUMA), a principal subsidiary of PT BUMA Internasional Grup Tbk, made headlines by successfully completing its inaugural issuance of Sukuk Ijarah I BUMA 2025. This issuance has been marked as the largest A+ sharia-rated corporate Sukuk Ijarah in a single issuance within Indonesia, valued at a staggering Rp2 trillion.

Strong Demand and Investor Confidence

The response to the Sukuk Ijarah was nothing short of remarkable, with the issuance being oversubscribed by 1.1 times. This overwhelming demand signifies robust investor confidence and highlights the growing market appreciation for sharia-compliant investment opportunities. Not only did the Sukuk attract participation from new investors, but it also drew interest from previous holders of BUMA's Rupiah Bonds, reinforcing the positive perception of BUMA’s financial instruments.

As detailed by Iwan Fuad Salim, Director of BUMA International Group, the successful issuance reflects the company’s commitment to fostering long-term relationships with its investors. Salim expressed gratitude for the support shown by investors, stating that the Sukuk issuance represents a significant step in their financial diversification journey.

Breakdown of the Sukuk Issuance

The Sukuk Ijarah I BUMA 2025 was issued in three distinct series, each designed to cater to different investment horizons and preferences:

• - Series A: Rp542.85 billion with an Ijarah fee of 7.50%, maturing in 370 days.
• - Series B: Rp364.95 billion with an Ijarah fee of 8.50%, maturing in 3 years.
• - Series C: Rp1.09 trillion with an Ijarah fee of 9.25%, maturing in 5 years.

Notably, over 50% of the commitments were allocated towards the 5-year tenor, indicating a marked preference among investors for longer-term investments, which reflects their confidence in BUMA's financial stability.

Allocating Proceeds for Operational Strength

The proceeds from the Sukuk will play a crucial role in bolstering BUMA's operations in Indonesia. As Silfanny Bahar, Director of BUMA, explained, the funds will be divided equally between capital expenditures and working capital. This strategic allocation aims to enhance operational efficiency and financial resilience, supporting the company's continued growth and exploration of new opportunities within the mining sector.

A Diverse Range of Investors

The Sukuk’s competitive blended rate has attracted a diverse investor base, including banks, asset managers, mutual funds, and pension funds. This broad array of commitments further exemplifies BUMA's strong market presence and the appeal of its financial instruments across various investor profiles.

About BUMA International Group

Founded in 1990, BUMA International Group has solidified its position as a globally diversified mining holding company, with operations in Indonesia, Australia, and the United States. The Group encompasses four core business segments: Mining Services, Mine Ownership, Social Enterprise, and Technology.

In an effort to continue expanding its portfolio, BUMA's recent acquisitions—including Atlantic Carbon Group, Inc. and the Dawson Complex—underscore its ambition to become a leading player in the mining industry. Additionally, the Group is committed to technological advancements through PT Bukit Teknologi Digital (BTech), focusing on enhancing efficiency and minimizing operational risks in line with modern best practices.

The company's commitment to social responsibility is reflected in its initiatives through PT BISA Ruang Nuswantara (BIRU), which aims to provide education and vocational training while promoting circular economy practices.

Conclusion

The successful issuance of the Sukuk Ijarah I BUMA 2025 marks a defining moment for BUMA, demonstrating not only its financial strength but also its extensive plans for future growth and sustainability within the mining sector. With a strong backing from the investment community, BUMA is set to continue its trajectory of growth and diversification in the years to come.