Coal Energy to issue bonds
23 January 2012
Coal Energy (CLE PW) plans to issue bonds, the company announced on Friday. The total volume of the bond placement has not yet been determined. The securities could be listed on the WSE’s alternative trading system, Catalyst, implying nomination in Polish zloty.
Roman Topolyuk: Coal Energy’s move to place bonds has been expected, given its low leverage (D/E of 0.08 as of September 2011) and large appetite for CapEx financing. The company had USD 42 mln in cash as of September 2011, and said it planned to spend USD 46 mln on CapEx by the end of its financial year (June 2012). The company planned prior to its IPO to invest USD 287 mln by 2016 on organic expansion in mining and waste recovery. The bond placement will help decrease the company’s cost of capital and cost of debt (currently 18%).
