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Jakarta Post

Mining holding Inalum raises $2.5b from global bond issuance

  • Norman Harsono
    Norman Harsono

    The Jakarta Post

Jakarta   /   Wed, May 13, 2020   /   09:37 am
Mining holding Inalum raises $2.5b from global bond issuance Aluminum products are displayed at a factory of state-owned aluminum producer PT Indonesia Asahan Aluminium (Inalum) in this undated photo. (

State-owned mining holding company PT Indonesia Asahan Aluminium (Inalum) has issued US$2.5 billion in global bonds to refinance its older bonds and fund infrastructure projects, the State-Owned Enterprises (SOEs) Ministry has said.

The ministry stated in a statement on Tuesday that Inalum, which has been rebranded as MIND.ID, issued five-year bonds, 10-year bonds and 30-year bonds, with coupon rates of 4.75 percent, 5.45 percent and 5.8 percent, respectively.

“This proves that international businesses still trust Indonesian SOEs,” said SOEs Minister Erick Thohir in the statement.

The proceeds from the bond issuance would be used to refinance $1 billion worth of maturing debt papers. The remaining funds would be funneled into a new aluminum smelter and a coal-fired power plant, among other projects owned by the company and its subsidiaries.

Inalum follows in the footsteps of several state-owned companies, such as construction firm Hutama Karya and Bank Mandiri, that issued global bonds earlier this year. Hutama Karya raised $600 million, while Bank Mandiri raised $500 million from its global bonds.

Last year, toll road operator Jasa Marga, energy holding company Pertamina and electricity firm PLN carried out similar offerings.