Ratu Prabu Energy to issue bonds next year to finance expansion

Publicly listed energy company PT Ratu Prabu Energy plans to issue bonds next year to partly finance the company?s expansion plan into mining industry.

The company, which is engaged in oil and gas industry, has officially submitted its bond offering plan to the Capital Market and Financial Services Supervisory Agency (Bapepam-LK). ?We hope we can launch the bond offering in the first quarter, 2012,? the company?s president director Buhanuddin Bur Maras said in Jakarta on Friday.

Burhanuddin however did not disclose the amount of the funds to be raised from the bond offering. ?We are still calculating the amount,? he added.

The company plans to use proceeds from the bond offering to finance gold mine development in Central Kalimantan, which is expected to absorb investment of about US$25 million. The company needs at least $5 million to finance the first stage of the mine development and another $15 million for the second stage.

?We are still waiting for the government?s permit for the mine development,? he added. (*)