(July 7, 2025)--PEFINDO has assigned its idA rating to PT Merdeka Battery Materials Tbk (MBMA)’s proposed Shelf Registered (SR) Bond I of maximum IDR16 trillion and its idA(sy) rating for Shelf Registered Sukuk Mudharabah I of maximum IDR4 trillion. The Company plans to issue Shelf Registered Bond I Phase I of maximum IDR2.4 trillion and Shelf Registered Sukuk Mudharabah I Phase I of maximum IDR600 billion to refinance its loans. At the same time, PEFINDO has affirmed its idA ratings to MBMA as well as its outstanding Bond I, Bond II, and Bond III. Outlook for the corporate rating is stable.
The rating reflects MBMA’s vertically integrated operations, strong synergy within the group and with strategic partners, as well as sizeable mining reserves and resources. However, the rating is constrained by risk of developing new projects and exposure to nickel price volatility.
The rating may be raised if MBMA strengthens its diversification profile, including having more downstream projects in the value chain of electric vehicle battery materials. The rating may also be raised if MBMA successfully operates its new projects as scheduled and generates higher revenue than projected while improving its profitability indicators, which will further positively affect its financial profile on a sustained basis. However, the rating may be lowered if MBMA generates lower revenue and profit margins than projected due to underperforming new projects or a significant deterioration in nickel price. The rating may also be under pressure if the Company obtains substantial debt to finance its new projects without being compensated by higher revenue and EBITDA.
MBMA is a holding company of several operating entities located in Indonesia Morowali Industrial Park (IMIP) and Konawe. The Company owns three Rotary Kiln Electric Furnace (RKEF) smelters, one nickel matte converter, an Acid Iron Metal (AIM) project, and a nickel mine. MBMA also has equity participation in High-Pressure Acid Leach (HPAL) plants in IMIP and is in the early phase of developing an HPAL plant in Indonesia Konawe Industrial Park (IKIP). As of December 31, 2024, its shareholders consisted of PT Merdeka Energi Nusantara (50.04%), Huayong International (Hong Kong) Limited (7.55%), PT Alam Permai (5.43%), Winato Kartono (2.03%), Anthony Kartono Tan (0.01%), and the public (34.94%). (ends)
