REPUBLIKA.CO.ID, JAKARTA -- Adaro Energy is seeking loans from several banking consortiums to refinance maturing debts.

Adaro Energy's Chief Financial Officer, Lie Luckman, said that Adaro must pay off the debt that will mature in mid-2021. Lie explained that several banking consortiums have agreed to provide loans to Adaro.

Adar noted that in the middle of this year the debt will mature at US$ 400 million. "We are trying to talk with several banks to be able to refinance these loans for the next five years," Lie said in a virtual press conference, Monday (19/4).

Lie has not been able to explain which banks will work with Adaro in this business because everything is still in process.

Adaro Energy President Director Garibaldi Thohir said that the welcome from the banking sector for Adaro's move was received positively. Several banks are interested in participating with Adaro to pay down the company's debt.

"We noted oversubscribed partners, there are quite a lot of consortiums," said Garibaldi.

Adaro Energy is the second largest mining company in Indonesia, which mainly runs coal mining operations in South Kalimantan and Central Kalimantan under a Coal Cooperation Agreement (CCA).  

Adaro is also the largest coal company by market capitalization. Adaro is also listed on the Indonesian stock exchange with the code ADRO.