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MIND ID looks for $2b loan to buy stake in Vale Indonesia, pay debt
State-owned mining holding company MIND ID is working to secure a loan as one of the options to support its purchase of a 14 percent stake in Indonesia’s largest nickel mining company, Vale Indonesia.
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Vale Base Metals CEO Deshnee Naidoo (left) and MIND ID president director Hendi Prio Santoso (center) attend the signing of an agreement for the acquisition of PT Vale Indonesia shares. (JP/Divya Karyza)
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tate-owned mining holding company MIND ID is working to secure a loan as one of the options to support its purchase of a 14 percent stake in Indonesia’s largest nickel mining company, PT Vale Indonesia.
MIND ID finance director Akhmad Fazri said the company was looking for a suitable funding structure to finance the acquisition and other needs, including debt restructuring and capital expenditure for companies under the holding.
He did not deny reports that the company was pursuing external loans amounting to $2 billion.
“We’re still considering [external loans]. We shall see the vibes from the lenders. If it’s good, we’ll follow up,” he said on Monday, as reported by Bloomberg Technoz on Tuesday. Akhmad did not elaborate on how much of the company debt would be restructured.
Read also: MIND ID to become largest single shareholder in Vale Indonesia for $300m
Nevertheless, he explained that MIND ID would still try to rely on internal cash to buy the Vale Indonesia stake but that that would depend on the dividend payment to the government.
“The SOEs Ministry has a dividend target from this SOE [MIND ID]. We are still looking at this. If the government demands [only] a small dividend, [MIND ID] could use internal cash,” Akhmad said.
