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PT Bumi Resources, Asia’s biggest thermal coal exporter, announced on Tuesday that it would issue $300 million of bonds on Friday with an interest rate of 12 percent. The market reacted negatively to the company’s strong appetite for debt, sending its shares tumbling the most in more than three months.

Bumi’s shares dove 6.5 percent to Rp 2,150 (20 cents) a share after the company confirmed the bond issue. It was the lowest close for Bumi shares since July 27.

Investors worried about the company’s ability to pay the bonds back.

“Bumi has confirmed [a planned issue of] $300 million in guaranteed senior secured notes issued by PT Bumi Capital, a wholly owned Bumi subsidiary, with a 12 percent interest rate per coupon,” said Dileep Srivastava, Bumi’s vice president for investor relations.

“The notes are expected to be issued on Nov. 13 [Friday] and to mature on Nov. 16, 2016.”

Credit Suisse and Deutsche Bank would act as the underwriters, Dileep said.

Bumi was forced to offer a relatively high interest rate because investors were aware of its high level of debt, said Edwin Sinaga, president director of PT Finacorporindo Nusa, a Jakarta-based brokerage firm.

“Investors don’t like a company that has too much debt because it decreases its credibility,” Edwin said.

Dileep said the money raised would be used for capital expenditure and mining exploration, as well as to finance future acquisitions and investments in mining-related companies.

Bumi has guaranteed the notes, along with subsidiaries Forerunner International, Sangatta Holdings, Kalimantan Coal and Sitrade Coal.

The bonds were rated Ba3 by Moody’s Investors Service and BB by Standard and Poor’s, Dileep said. They have been pre-sold to US and other investors, Dileep said.

The company will become the fourth Indonesian-based coal company to sell dollar-denominated bonds to the international market this year.

This will be the second time for Bumi this year. Its Singapore-based subsidiary, Enercoal Resources, issued $375 million in convertible bonds in August.

Since October, three Indonesian coal and mining companies issued dollar bonds that offered returns below Bumi’s interest rate.

PT Adaro Indonesia, a unit of the country’s second-biggest coal miner, PT Adaro Energy, is paying a yield of 7.75 percent per year for $800 million of 10-year bonds.

Indo Integrated Energy II, a unit of PT Indika Energy, is paying 9.75 percent for $230 million of seven-year bonds.

PT Bukit Makmur Mandiri Utama, the country’s second biggest coal contractor, is paying 11.75 percent for $600 million of bonds maturing in four and five years.