by Elisa Valenta
State-owned mining holding company Indonesia Asahan Aluminium (Inalum) has raised $2.5 billion from issuing global bonds. The bonds were sold in three tranches, of maturities 5, 10 and 30 years, the Ministry of State-Owned Enterprise said in a statement, with coupon rates of 4.75%, 5.45%, and 5.8% respectively. The proceed will be used to refinance Inalum’s maturing $1 billion in debt, as well as for project financing.
Inalum, which controls Indonesia’s largest gold and copper miner Freeport Indonesia, intends to retain at least $500 million of the proceeds to acquire other mining companies and to refinance debt. At the same time, the remainder will be used to fund the tender offers. The miner is planning to buy a stake of 20%–25% nickel producer Vale Indonesia, by the end of May. As reporter, Vale Indonesia is reducing its foreign ownership to meet regulatory requirements.
The transaction was Inalum’s second foray into the international debt market. The borrower successfully debuted its first global bond in 2018, when it raised $4 billion from a four-tranche deal.
