Backed by lofty coal prices, Geo Energy Resources will be making an early redemption of its outstanding US dollar-denominated bond, which will help save annual financing costs of US$4.8 million and leave the company largely debt-free.

The coal miner, which calls this a “win-win” opportunity, plans to redeem the bonds on Oct 10 at a price equal to 102% of the principal, plus accrued and unpaid interest. The bonds carry an interest rate of 8% and will mature next year.

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