JAKARTA (Yosefardi) – PT Bakrie & Brothers Tbk (BNBR) plans to pay short term debts worth Rp2.5 trillion to Rp3 trillion in 2014, including transaction of its repurchase agreement (repo).
As of September 2013, its repo debt totaled Rp4.1 trillion. BNBR will divest some assets for funding its debt payment.
It plans to sell shares in subsidiaries; PT Bakrie Pipe Industries (BPI) and PT South East Asia Pipe Industries (SEAPI).
BNBR and a local investor interested to buy 90% shares of BPI has in August 2013 signed a conditional sale and purchase agreement (CSPA). BNBR has also received offering from some potential buyers for 50% shares of SEAPI.
BNBR will also sell 26 hectares land area which values for US$50 million.
The payment of debt would help cut interest expenses by 50% next year. As of September 2013, BNBR’s interest expenses reached Rp300.25 billion.
BNBR also seeks US$1.4 billion loan to fund its coal-fired power plant with capacity of 2×660 megawatts in Tanjung Jati A, located in Cirebon, West Java. This project costs US$2 billion.