MDKA - IDR1.3tn bond issuance

MDKA - IDR1.3tn bond issuance Merdeka Copper Gold (MDKA) has issued IDR1.3 tn bonds under Phase VI of its IDR3 tn Shelf-Registered Bonds IV, consisting of Series A (IDR1.1 tn, 7.25% coupon, 3-year tenor) and Series B (IDR200 bn, 8% coupon, 5-year tenor), with listing on IDX set for 30 July 2024; proceeds will be used for working capital, refinancing, and general corporate purposes. (Source : Company) Comment : Following the IDR1.3 tn bond issuance (~USD 83 mn; USD/IDR:15,700), MDKA’s pro forma leverage remains manageable with DER rising slightly from 0.80x to 0.82x and Net Gearing from 0.36x to 0.38x, assuming no increase in cash. Total interest-bearing debt increases to USD1.57 bn, while net debt reaches USD1.12 bn. Leverage impact is minimal; clarity on fund allocation remains key.Our latest recommendation is BUY with aTP of IDR3,300/share, implying 26F PE of 21.3x.