REPUBLIKA.CO.ID, JAKARTA -- Publicly traded coal mining company PT Adaro Energy Tbk (ADRO) said it has decided to repay a bond debts before maturity.

The company, one of the largest coal producer, said it would repay a US$800 million debt in bond issued on 22 October 2009.

Director and Chief Financial Officer of Adaro, David Tendian, said in a statement here on Friday, the fund to repay the debt would be in loan.

The company has received a loan of US$1 billion signed on August 25, 2014.

Part of the loan and an internal cash would be used to repay the debt, David said.

"The cost of the amortizing loan facility is lower than the bond debt. The repayment of the bond debt with a combination of the loan facility and internal cash would roll over the maturity date," he said.

The amortizing loan facility would also cut the financing cost and maintain strong capital structure, he added.

"With the repayment, Adaro would save US$40 million in cost of money per year," he said.

He said the refinancing decision is in line with the strategy of the company to maintain a strong balance and flexible liquidity.

"Amid the shrinking coal price, we would focus attention to maintaining capital level, cost efficiency and reduction of debts. We will remain on the right track to reach targets this year and carry on with long term strategy," he said.

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