JAKARTA -
Shares in Indonesia's biggest coal producer, PT Bumi Resources Tbk (BUMI.JK), jumped by as much as 18.6 percent on Friday, after a special purpose vehicle owned by the firm raised $375 million in a convertible bond offering.
Evercoal Resources has raised almost double the original target of $200 million from the sale of the five-year bonds which are guaranteed and transferable to Bumi. The bonds have a coupon of 9.25 percent.
Shares in Bumi ended up 12.37 percent at the close of the first session, outperforming the broader market .JKSE which ended up 0.89 percent.
A trader in Jakarta, who declined to be identified by name, said the increase in the size of the bond issue reflected increasing risk appetite, at a time when interest in Indonesia has picked up.
Bumi's share price has almost trebled so far this year, while Indonesia Composite Index has risen about 71 percent. (31 July 2009)
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