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Geo Energy unit's US$300m notes offering more than 3 times oversubscribed

INDONESIAN coal mining group, Geo Energy Resources Limited, said on Thursday that its subsidiary's US$300 million notes offering was more than three times oversubscribed, with a total order book of more than US$1.2 billion.

The fixed rate senior notes, which are due 2022, have a coupon rate of 8 per cent. The net proceeds from the offering will be used to redeem the outstanding S$100 million 7 per cent medium term notes that Geo Energy issued in July 2014, full repayment of the advances received from Engelhart Commodities Trading Partners (Singapore) Pte Ltd, potential acquisitions of coal mining assets, as well as for working capital and general corporate purposes, the group said.

These notes are rated B2 by Moody's Investors Service, B by Standard and Poor's Ratings Services and B+ by Fitch Ratings.

They will be issued by the group's subsidiary, Geo Coal International Pte Ltd, on Oct 4, 2017 and are expected to be listed on the Singapore Exchange on Oct 5, 2017.

sentifi.com

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JP Morgan, Deutsche Bank, Citic CLSA Securities and BOC International acted as the joint bookrunners and joint lead managers for the notes offering.

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