Coal price bounce buoys Buma's dollar bond sale

The coal mining group gets a warm welcome as the recovery in commodity prices helps bond investors to look beyond the recent default of key customer PT Berau Coal Energy.

PT Bukit Makmur Mandiri Utama Buma returned to international bond markets for the first time in seven years on Tuesday, pricing a $350 million five non-call three-year deal that performed well in the immediate after-market.

 

The Ba3BB- rated company, Indonesia’s second-biggest coal mining contractor, built an order book totaling more than $2.2 billion from 185 accounts, as the recovery in commodity prices and its improving profit margins helped investors overcome their concerns over the company's exposure to recent defaulter PT Berau Coal Energy.

 

According to its latest quarterly financial results...

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