Indonesia’s metals giant Mind ID seeks bids for $2 billion loan

Mining Industry Indonesia has requested proposals for a loan of as much as $2 billion, according to people familiar with the matter.

The state-owned mineral-resources holding company plans to use the proceeds partly to repay existing debt, said the people, who asked not to be identified as they aren’t authorized to speak publicly. It may also include funds for the PT Vale Indonesia stake purchase, some of the people said. 

Mind ID, as the firm is known for short, has stakes in several Indonesian companies with interests in commodities ranging from aluminum to nickel, copper and gold. Fitch Ratings in a November report said it expected Mind ID to continue investing in downstream processing projects, with capital expenditures and acquisition-related outflows likely elevated.

Indonesia is working to boost its economy through mineral downstreaming. It’s also looking to derive more value from its rich reserves of nickel, a key ingredient in batteries, through strategies like wooing global electric-vehicle makers to build facilities in the country. 

Mind ID is seeking bids within a month. After considering proposals, the company may — depending on the pricing — choose loan or bond, or both, two of the people said.

“Mind ID is planning third-party funding in 2024 in line with its business plan, either bank loans or bond issuance,” the company’s corporate secretary Heri Yusuf said in a text message.