Ares Asia Limited (HKG:0645) announced that Able point, an indirect wholly-owned subsidiary of Ares Asia, entered into a subscription agreement with PT Langit Timur Energy (LTE)、PT Mandiri Arya Persada (MAP) and PT Lintas Sanjaya (LS) to subscribe for the bond in a principal amount of US$5 million exchangeable into the MAP shares.

The maturity date of the bond is the first anniversary of the date of issue of the bond with zero coupon. The bond could be extended for 1 year if mutually agreed by the issuer and the subscriber.

The redemption price is fixed at US$6.084 million, representing a redemption premium of 21.6888%, throughout the period from the date of issue to the maturity date. In case of the maturity date is being extended, the redemption price will be calculated based on a redemption premium of 41% on an accrued basis on the total outstanding principle amount of the bond, starting from the first anniversary of the date of the issue of the bond.

MAP's subsidiaries hold coal concessions which cover 40 hectares of four thermal and/or coking coal concessions in West Papua, Indonesia.