INDY Issues US$100 Million Senior Notes to Fund Gold Mine

Indika Energy Tbk (IDX: INDY) has announced the completion of the issue and offer of senior notes worth US$100 million, with a fixed interest rate of 8.75% per year and maturity in 2029. Quoted from the disclosure to the Indonesia Stock Exchange (BEI), the notes are guaranteed unconditionally and non-callable by a number of subsidiaries. These INDY subsidiaries include PT Indika Inti Corpindo, PT Tripatra Multi Energi, PT Tripatra Engineering, PT Tripatra Engineers and Constructors, and Tripatra (Singapore) Pte. Ltd. In addition, the bond issuance is secured through share pledges provided by the issuer and the guarantor subsidiaries. The funds raised will be used exclusively to finance capital expenditure for the development of a gold mining project in South Sulawesi. The project is owned by Masmindo Dwi Area, a wholly owned subsidiary of the issuer. “This transaction is undertaken to support the Company’s broader transition from coal business to a more diversified portfolio,” the management said on Tuesday (19/5/2026). The management also explained that the corporate guarantee and share pledge transactions by the guarantor and issuing subsidiaries are affiliate transactions as regulated by POJK Number 42/POJK.04/2020. The transactions are required to be reported and do not require independent approval as they are conducted between the company and a controlled entity in which the company holds at least 99% of the shares. Additionally, Indika Energy emphasised that the new bond issue does not constitute a material transaction under POJK Number 17/POJK.04/2020, since the issue size does not reach 20% of the company’s total equity according to the audited consolidated financial statements as of 31 December 2025.