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ublicly-listed PT Borneo Lumbung Energi & Metal (BORN) says may proceed with a global bond issuance to refinance loans used to purchase a stake in London-listed Bumi Plc.

Borneo president director Alexander Ramlie told reporters on Monday that the issue would probably amount to “half” of the US$1 billion it borrowed from Standard Chartered Bank to buy the stake.

The plan follows similar moves by other publicly listed companies to lower their cost of funds by repaying loans using proceeds from bonds after yields decreased following recent upgrades of Indonesia’s sovereign credit rating.

In November, Borneo settled a deal to purchase a 23.8 percent stake in Bumi Plc. from PT Bakrie & Brothers in a deal worth $1 billion.

Borneo pledged its 99.9 percent ownership in subsidiary PT Asmin Koalindo Tuhup, internal cash flow and a stake in Bumi Plc for the loans.

Alexander declined to reveal when the bonds would be issued, saying that would not likely happen this year.

“We are still analyzing [the bond issuance],” Alexander said after the annual extraordinary shareholders meeting of PT Bumi Resources, a coal mining company in which Bumi Plc currently holds 29.2 percent stake.

Alexander was approved on Monday to serve as one of 13 commissioners of Bumi Resources.

Bumi Plc chairman Samin Tan was also named president of the board of commissioners, replacing Suryo Bambang Sulisto.

Samin’s nomination strengthened his control of the companies, which were previously synonymous with the Bakrie family.

Recently, Samin was also appointed president director of PT Bumi Resources Minerals (BRMS), an 87 percent owned subsidiary of Bumi Resources.

“We have agreed that our priority is to bring down our loans. How we will do that, some of you have heard, including through reconsidering of BRMS’s status. It may become one source of reducing debts. However, we will endorse the repayment not from selling assets,” Samin said after the meeting.

During its annual shareholders meeting, Bumi Resources was approved to disburse 15 percent of its 2011 net profits of $220 million as dividends.

According to its website, Bumi Plc reported mining 20 million tons of coal in the first quarter of the year, up 9 percent from the same period last year.

“Operating performance was effected by the seasonal high level of rainfall in Kalimantan during the first quarter and a strike at one of [Bumi Resources’] contractors,” the company said in a statement.

The company also said that its production unit costs were higher, mainly due to increased fuel costs, and a higher stripping ratio at PT Berau Coal Energy (BRAU).

It expected costs to decline going forward as various infrastructure projects under development are brought into commercial production.

Bumi Plc currently holds an 85 percent stake in Berau.

Shares in Borneo closed at Rp 700 (US 7 cents) a piece on Monday, down 2.78 percent or 20 points from Rp 720 on May 16, the last day of trading last week.

Meanwhile, shares in Bumi Plc stood at £380.30 as of 10:30 a.m. London time.

Shares in Bumi Resources (BUMI) closed at Rp 1,660 a piece on Monday, a 0.6 percent drop from Rp 1,670.