JAKARTA. Hard coking-coal miner PT Borneo Lumbung Energi & Metal is seeking a longer maturity period for the company’s debts with Standard Chartered Bank.

President director Alexander Ramlie said Borneo had proposed an extension of the maturity period for between US$300 million to $500 million of its debts to the bank to seven to eight years from five years at present.

The loan’s outstanding amount stood at $795 million as of the end of September.

“We will pay part of the debt by dividend to be paid by Bumi plc. Borneo’s portion of the dividend is around $200 million. If we get money from selling [the company’s main asset] PT Asmin Koalindo Tuhup, we will also use that,” Alexander said.

Borneo in January 2012 obtained loans worth $1 billion from the bank to purchase 23.8 percent stake in London listed Bumi plc from the Bakrie Group. The loans carried an interest rate of 5.65 percent above LIBOR (London Interbank Offered Rate) for offshore lenders and 6.15 percent above LIBOR for onshore lenders.

“We hope that there will be no interest rate increase. We are also discussing to remove some covenants, including the debt to EBITDA [earnings before interest, tax, depreciation and amortization] ratio,” Alex said after the company’s annual meeting of shareholders on Wednesday.

Finance director Kenneth Allan said Borneo had paid $205 million to the bank, including quarterly installments made this year of $35 million per three months.

“All installments are from internal cash. We will pay another $35 million in this fourth quarter or lower if we reach a restructuring deal,” Allan said.

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