MDKA - Bonds and IPO proceeds for expansion

MDKA - Bonds and IPO proceeds for expansion Merdeka Copper Gold (MDKA) intensively held debt refinancing and expansion plans. MDKA has been issuing Shelf Registration Bonds IV Phase III in 2023 and targets funds to reach IDR15 tn. The bond issuance was also to pay off and pay interest on two series bonds worth of IDR1.64 tn. The IPO of its subsidiary in April'23 with IDR9.2 tn in proceeds, Merdeka Battery Materials (MBMA), was also MDKA's strategy in obtaining fresh funds. In addition, as of June 30, 2023, MDKA has a revolving credit facility of USD160 mn that has not been withdrawn yet. This year, MDKA estimates capex of USD700 mn or equal to IDR10.74 tn with allocation; a) USD70 mn to support the Tujuh Bukit gold mine and Wetar copper mine, b) USD 30 mn for the completion of the pre-feasibility study of the Tujuh Bukit copper project, c) USD110 mn for the Pani Gold project, d) USD20 mn for the construction of a jetty in Wetar, e) USD250 mn for the Acid, Iron, Metal (AIM) project, f) USD90 mn for the Konawe SCM nickel mine, and g) USD130 mn for ZHN's RKEF project. (Source : Kontan)