Asia Resource Minerals agrees financing deal with bondholders

Caitlin Morrison
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Nat Rothschild is one of the mining firm’s bondholders
SHARES in Asia Resource Minerals fell by almost 12 per cent yesterday, after the Indonesian coal mining firm updated the market on its recapitalisation strategy.

The company has reached an agreement with its bondholders, including Nat Rothschild’s NR Holdings, to restructure notes due in 2015 and 2017. The notes will now mature in 2019 and 2020.

The firm said the notes exchange, together with the proposed raising of $100m (£68.3m) through an equity offering, constituted a “comprehensive recapitalisation which would create a more stable capital structure for the benefit of all stakeholders”.

Analysts at Numis said the move showed that Asia Mineral had made “some good progress” on its refinancing, and said it should relieve near-term balance sheet pressure “especially with regards to the $450m July 2015 notes”.

“This is a significant step forward but there’s likely more work ahead,” said analysts.