ECONOMIC ANALYSIS OF PT SUMBER DAYA BUMI’S LOAN REFINANCING

• Main Author: Irawan, Hary
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/47032
• Institution: Institut Teknologi Bandung

Coal is still one of the most desirable resources as fuel for power plants in almost all the world. Because the price of coal, which is cheap and easily available, is almost in the corners of the earth there are coal mines, especially in Indonesia. In early 2000, where coal prices were high, many coal companies established in Indonesia, all businessmen competing to have coal companies. On the one hand in 2015 where coal prices plummeted many coal companies went out of business because they were unable to sell their coal. On the other side, coal mining company still one of the state revenue contributor with royalty, land-rent and coal sales. PT Sumber Daya Bumi (SDB) is a company that listed on Indonesia Stock Exchange (IDX) and having main business in coal industry. Currently SDB have 2 (two) subsidiaries of coal mining that have been main players to the Company, which are PT Andalan (PTA) and PT Kalimantan (PTK), SDB is acknowledged as the largest thermal coal exporter in the world. SDB is active on doing expansion and develop their business in mining industry that action need capital in which part of it is from bank loan. In 2009, SDB had restructuring their debt and repaid almost half of their loan earlier than schedule in 2011. In 2016, The Company had face PKPU (Penundaan Kewajiban Pembayaran Utang/Suspension on Debt Payment) and the result is 99.8% support of voting secured creditors and 100% of voting unsecured creditors agree on composition agreement. Hence, In 2017, the company had closed the Right Issue and implement the composition agreement in the following year. In the composition agreements that are include payment to vendors and payment to bank. Bank loan divided into 3 (three) senior loan amounted to US$ 1.73 billion that mature in 5 (five) years period. After more than one year that an opportunity of lower interest rate and also condition on coal price become decreasing. This Final Project is focus on analysis of loan refinance in SDB, by analyzing on revenue projection of SDB within 10 (ten) years and financial projection using Discounted Cash Flow (DCF) method. The result is refinancing option doable based on sales and cash projection. Based on the projection debt will be settle in 7 years period starting the projection on 2019 and risk for carry over can be covered for cash flow.