BUMA Commences First IDR Bond Offering to Strengthen its Position as the Leading Mining Services Company in Indonesia and Australia

JAKARTA, Indonesia, Dec. 4, 2023 /PRNewswire/ -- PT Bukit Makmur Mandiri Utama (BUMA), a subsidiary of PT Delta Dunia Makmur Tbk. ("Delta Dunia Group" or IDX: DOID), will, for the first time, offer BUMA 2023 Bond Offering I ("Bonds") with a maximum value of IDR1.5 trillion. The Book-building Period begins on Monday, December 4, 2023, and will conclude on Friday, December 8, 2023. This strategic initiative marks a historic milestone for BUMA in time with its 25th anniversary. BUMA's inaugural entry into the Indonesian bonds market further strengthens its credibility as a leading mining services company in Indonesia and Australia.

Indra Kanoena, President Director of BUMA, stated, "The BUMA 2023 Bond Offering I is a testament to our commitment to continually deliver long-term value to all stakeholders. We believe that this bond issuance will strengthen the confidence of domestic investors to support sustainable mining industries."

The usage of the bond proceeds is intended to drive BUMA's growth, including increasing capital for business development and strengthening operational efficiency strategies. The BUMA 2023 Bond Offering I consists of three series: series A with a duration of 370 (three hundred seventy) calendar days, series B with a duration of 3 (three) years, and series C with a duration of 5 (five) years, starting from the issuance date. In this corporate action, BUMA has appointed PT Mandiri Sekuritas and PT Sucor Sekuritas as the Lead Underwriters of the Bond Issuance.

Silfanny Bahar, Director of BUMA, mentioned, "BUMA has a proven track record in robustly managing the company's cash flow. Our future focus is to continue enhancing cash flows from clients in Indonesia and Australia, managing costs through innovative technology utilization, and expanding our business in line with our strategy. We are committed to maintaining solid financial management, especially in upholding strong credit metrics and strengthening our dominant position in the mining sector, both in Indonesia and Australia."

BUMA is the second in terms of market share in Indonesia's mining services sector and is recognized as a respected tier 1 contractor in Australia. The company boasts a robust order book, encompassing long-term partnerships and collaborations with leading mining companies across various locations, commodities, and mining disciplines in Indonesia and Australia. With a steadfast commitment to environmental, social, and governance (ESG) principles aiming for net-zero emissions by 2050, BUMA has significantly contributed to the progress of Delta Dunia Group, evident in the Group's achievement as the second-highest performer in the global coal sub-industry, as per the Sustainalytics ESG Risk Rating assessment. Delta Dunia Group has notably progressed in its ESG Risk Rating, improving from 42.4 in 2022 to 32.7 in July 2023, marking a 10-point increase (or 25%).

BUMA's performance for the nine months in 2023 has set a record revenue of USD1.363 billion with an EBITDA of USD308 million, resulting in a net profit of USD30 million. This performance reflects excellent financial management and rapid company growth. During the same period, BUMA demonstrated robust cash flow capabilities, with operational cash flow soaring to USD237 million. With continuously increasing EBITDA and achieving a net debt-to-EBITDA ratio increase of 1.85x, the company is poised to maintain strong credit metrics.

"The BUMA 2023 Bond Offering I further diversifies our financing strategy, consisting of Bonds, Conventional and Sharia Bank Loans, as well as Leasing financing schemes, all in US Dollars. This strategic step solidifies our commitment to transparency, accountability, and engagement with our market's investment community," concluded Indra.

About PT Delta Dunia Makmur Tbk (Delta Dunia Group):

Established in 1990, PT Delta Dunia Makmur Tbk (Delta Dunia Group) is a prominent holding company operating in Indonesia and Australia. Our principal subsidiary, PT Bukit Makmur Utama (BUMA), is a leading provider of mining services to some of the largest coal producers in Indonesia and Australia (BUMA Australia Pty Ltd).

In 2023, Delta Dunia Group expanded its portfolio with the addition of two new subsidiaries: PT Bukit Teknologi Digital (B-TECH), offering comprehensive mining technology solutions that empower companies within the mining industry, and PT BISA Ruang Nuswantara (BIRU), a social entity dedicated to education, vocational schools, and fostering a circular economy.

Listed on the Indonesia Stock Exchange (IDX Code: DOID), Delta Dunia Group is headquartered in Jakarta, Indonesia, and is supported by a workforce of over 16,000 employees across Indonesia and Australia.