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Rukun Raharja, a listed oil and gas services provider, has secured a $40 million loan commitment from a local lender to refinance its debts, the company said on Saturday.

“That’s higher than we need for debt refinancing,” corporate secretary Cindy Budijono said.

Rukun has a Rp 532 billion ($59 million) debt burden this year, including its promissory notes. It hopes to cut it to Rp 250 billion next year.

Despite securing the commitment, Cindy said the company still planned to hold a rights issue to raise Rp 230 billion to pay its promissory notes as well as the notes’ interest charge.

Rukun plans to sell 340 million new shares, equivalent to a third of its equity. The shares will be offered at Rp 677 each.

The company issued promissory notes worth Rp 219 billion at the end of 2010 to acquire two gas distribution companies, Panji Raya Alamindo and Triguna Internusa Pratama. Its earnings have increased significantly since the acquisitions.

Apart from the rights issues, Rukun also plans to collect its loans from its subsidiaries, worth $30 million in total.

The company is aiming for 2012 earnings of Rp 65.9 billion, up 264 percent from the Rp 18 billion it estimates for 2011.

Revenue this year is expected to rise 22.9 percent from 2011’s approximately Rp 806 billion.

The company’s business includes offering support services to oil, gas, mining and power generation projects as well as gas and fuel distribution.

In Friday trading on the Indonesia Stock Exchange, Rukun’s shares fell 1.6 percent to Rp 620.