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Friday, 25 September 09
INDONESIA STOCK EXCHANGE EXAMINES BUMI DEAL WITH CHINESE SOVEREIGN WEALTH FUND
 The Jakarta globe reported that, The Indonesia Stock Exchange is looking into the $1.9 billion financing deal between PT Bumi Resources, the country’s largest coal producer, and a Chinese sovereign wealth fund that would require the Bakrie group company to ultimately pay 19 percent interest at maturity, an exchange director said on Thursday.
Eddy Sugito, a director of the exchange, known as the IDX, said the bourse was seeking an explanation of the phrase “debt-like instruments,” which was how Bumi described the nature of the investment being purchased by China Investment Corp., the sovereign wealth fund.
Eddy said the IDX would analyze Bumi’s disclosure to the exchange, as well as media reports on the deal, before deciding whether to request further explanations from Bumi.
Bumi president director Ari S Hudaya on Wednesday announced that CIC would invest $1.9 billion in “debt-like instruments” offered by Bumi and that the money would be used to restructure Bumi’s debts and finance capital expenditure.
Ari said $600 million was repayable in four years, $600 million in five years and the remaining $700 million in six years. The investment attracts a 12 percent annual cash coupon, with a total internal rate of return of 19 percent, with the balance payable at the time of final maturities.
Ari Pitojo, an equity analyst at PT Mandiri Sekuritas, said the market needed an explanation from Bumi about the nature of the “debt-like instruments” and the high internal rate of return.
Dileep Srivastava, Bumi’s vice president for investor relations, told the Jakarta Globe that there was no reason for the market to worry about the 19 percent rate on the debt.
“[This deal] has huge potential because we have common interests, and it’s the first big investment by CIC in Indonesia,” Dileep said. He would not elaborate on “debt-like instruments,” but he hinted that Bumi’s assets could be offered as collateral to CIC.
“I can’t disclose the details yet as I am bound by the confidentiality agreement,” he said. “All I can say is that the security packages that are being required will be the same as earlier packages [offered to creditors].
“If you want to buy a new house, and you don’t have money, what do you use to get a loan?”
Pardomuan Sihombing, the head of research at PT Paramitra Alfa Sekuritas, said on Thursday that the 12 percent annual interest rate was relatively cheap.
“When compared to Indonesian government dollar bonds, which have an 11 percent annual interest rate, the 1 percent premium for a corporate loan is very cheap,” Pardomuan said.
He said Bumi’s ability to maintain sufficient cash flow and repay the debt would depend on its earnings growth, which could be threatened by a plunge in global coal prices.
“If Bumi’s earnings growth remains stable at near its current growth rate, I think they would have no trouble repaying the debts. But there would be trouble if coal prices slump again in later years,” Pardomuan said.
Bumi posted earnings of $125 million in the first quarter of this year. It has not yet released second-quarter earnings, nor has it issued any earnings forecast for this year.
The company’s total debt, including short-term debt, stood at $3.4 billion in the first quarter, compared to assets of $5.5 billion.
Pardomuan said he thought commodity prices, particularly energy prices, would remain cheap prior to a full global economic recovery.
He added that information available on the Bumi-CIC deal was incomplete, and he expected Bumi to make further public disclosures about it soon.
In June, Bumi won shareholder approval to pledge the assets of two coal miners, PT Kaltim Prima Coal and PT Arutmin Indonesia, and one noncoal miner, Australian-based Herald Resources, for more loans, the amount of which the company did not disclose at the time.
Bumi’s shares have more than tripled in price this year, making it the best-performing stock in the 19-stock MSCI Indonesia Index.
Source: The Jakarta Globe
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Wednesday, 09 December 09
INDONESIA'S RECAPITAL TO PAY $1.48 BLN FOR BERAU
Recapital Advisors, an Indonesian investment firm, will pay $1.48 billion in cash and notes to buy coal miner PT Berau Coal, $300 million of which i ...
Wednesday, 09 December 09
COAL INDIA YET TO IMPLEMENT IMPORT LINKED PRICES
Coal India Ltd is adopting a conservative approach in pricing despite being allowed to charge import-linked price for the country's minuscule reser ...
Wednesday, 09 December 09
INDIA NEEDS TO IMPORT 29 MILLION TONNE STEAM COAL IN 2009 - 10
Mr Sriprakash Jaiswal Indian minister of state (Independent Charge) for coal informed the Rajya Sabha that Central Electricity Authority has estimat ...
Tuesday, 08 December 09
VOLATILE COAL PRICES SPUR ASIAN HEDGING
Volatile coal prices are forcing staid Asian power firms to change the way they buy fuel, setting the scene for a hedging boom as a growing array of ...
Tuesday, 08 December 09
MEC TO SHIP 2M T INDONESIA COAL TO INDIA IN 2010 - REUTER'S INTERVIEW
The UAE's Middle East Coal plans to start operation of coal mines in Indonesia's East Kalimantan province next year with initial production of 2 m ...
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- Power Finance Corporation Ltd., India
- TeaM Sual Corporation - Philippines
- SMC Global Power, Philippines
- Malabar Cements Ltd - India
- AsiaOL BioFuels Corp., Philippines
- PNOC Exploration Corporation - Philippines
- Ceylon Electricity Board - Sri Lanka
- Sojitz Corporation - Japan
- Cement Manufacturers Association - India
- Meralco Power Generation, Philippines
- Kumho Petrochemical, South Korea
- Maharashtra Electricity Regulatory Commission - India
- Dalmia Cement Bharat India
- ICICI Bank Limited - India
- TNB Fuel Sdn Bhd - Malaysia
- Semirara Mining Corp, Philippines
- Planning Commission, India
- Essar Steel Hazira Ltd - India
- Borneo Indobara - Indonesia
- Baramulti Group, Indonesia
- IEA Clean Coal Centre - UK
- Marubeni Corporation - India
- Kapuas Tunggal Persada - Indonesia
- Cigading International Bulk Terminal - Indonesia
- Rio Tinto Coal - Australia
- GAC Shipping (India) Pvt Ltd
- Electricity Generating Authority of Thailand
- Holcim Trading Pte Ltd - Singapore
- Sindya Power Generating Company Private Ltd
- IHS Mccloskey Coal Group - USA
- Sical Logistics Limited - India
- Minerals Council of Australia
- Pendopo Energi Batubara - Indonesia
- Vedanta Resources Plc - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Central Java Power - Indonesia
- Savvy Resources Ltd - HongKong
- Aditya Birla Group - India
- Asmin Koalindo Tuhup - Indonesia
- Straits Asia Resources Limited - Singapore
- India Bulls Power Limited - India
- Jaiprakash Power Ventures ltd
- Parliament of New Zealand
- LBH Netherlands Bv - Netherlands
- Indian Energy Exchange, India
- European Bulk Services B.V. - Netherlands
- Vijayanagar Sugar Pvt Ltd - India
- Posco Energy - South Korea
- Globalindo Alam Lestari - Indonesia
- Bhushan Steel Limited - India
- Xindia Steels Limited - India
- GN Power Mariveles Coal Plant, Philippines
- Coalindo Energy - Indonesia
- London Commodity Brokers - England
- Attock Cement Pakistan Limited
- Deloitte Consulting - India
- Bangladesh Power Developement Board
- Metalloyd Limited - United Kingdom
- Gujarat Electricity Regulatory Commission - India
- GMR Energy Limited - India
- Kobexindo Tractors - Indoneisa
- Kalimantan Lumbung Energi - Indonesia
- Tamil Nadu electricity Board
- Global Green Power PLC Corporation, Philippines
- Rashtriya Ispat Nigam Limited - India
- White Energy Company Limited
- Oldendorff Carriers - Singapore
- Intertek Mineral Services - Indonesia
- Goldman Sachs - Singapore
- Billiton Holdings Pty Ltd - Australia
- Ind-Barath Power Infra Limited - India
- Banpu Public Company Limited - Thailand
- CNBM International Corporation - China
- Indika Energy - Indonesia
- Antam Resourcindo - Indonesia
- Wilmar Investment Holdings
- OPG Power Generation Pvt Ltd - India
- Trasteel International SA, Italy
- Altura Mining Limited, Indonesia
- Sakthi Sugars Limited - India
- Pipit Mutiara Jaya. PT, Indonesia
- Parry Sugars Refinery, India
- Latin American Coal - Colombia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Therma Luzon, Inc, Philippines
- Thiess Contractors Indonesia
- Indian Oil Corporation Limited
- SMG Consultants - Indonesia
- PowerSource Philippines DevCo
- Carbofer General Trading SA - India
- Eastern Coal Council - USA
- CIMB Investment Bank - Malaysia
- Kohat Cement Company Ltd. - Pakistan
- Mjunction Services Limited - India
- Lanco Infratech Ltd - India
- Siam City Cement PLC, Thailand
- Energy Link Ltd, New Zealand
- Bukit Baiduri Energy - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Binh Thuan Hamico - Vietnam
- Electricity Authority, New Zealand
- Price Waterhouse Coopers - Russia
- Central Electricity Authority - India
- Kideco Jaya Agung - Indonesia
- Renaissance Capital - South Africa
- Coal and Oil Company - UAE
- Edison Trading Spa - Italy
- Iligan Light & Power Inc, Philippines
- Commonwealth Bank - Australia
- Bharathi Cement Corporation - India
- Riau Bara Harum - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Bulk Trading Sa - Switzerland
- Anglo American - United Kingdom
- Bhoruka Overseas - Indonesia
- Mercator Lines Limited - India
- Bukit Asam (Persero) Tbk - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Manunggal Multi Energi - Indonesia
- Karaikal Port Pvt Ltd - India
- Formosa Plastics Group - Taiwan
- McConnell Dowell - Australia
- Romanian Commodities Exchange
- Siam City Cement - Thailand
- Gujarat Mineral Development Corp Ltd - India
- Sinarmas Energy and Mining - Indonesia
- Bayan Resources Tbk. - Indonesia
- New Zealand Coal & Carbon
- Meenaskhi Energy Private Limited - India
- The University of Queensland
- Economic Council, Georgia
- PTC India Limited - India
- Indogreen Group - Indonesia
- Australian Coal Association
- Ministry of Mines - Canada
- Heidelberg Cement - Germany
- Indo Tambangraya Megah - Indonesia
- Salva Resources Pvt Ltd - India
- Indonesian Coal Mining Association
- The State Trading Corporation of India Ltd
- VISA Power Limited - India
- GVK Power & Infra Limited - India
- Larsen & Toubro Limited - India
- Miang Besar Coal Terminal - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Alfred C Toepfer International GmbH - Germany
- Grasim Industreis Ltd - India
- Kepco SPC Power Corporation, Philippines
- Tata Chemicals Ltd - India
- Mercuria Energy - Indonesia
- Samtan Co., Ltd - South Korea
- Chettinad Cement Corporation Ltd - India
- Australian Commodity Traders Exchange
- Aboitiz Power Corporation - Philippines
- Maheswari Brothers Coal Limited - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- International Coal Ventures Pvt Ltd - India
- Semirara Mining and Power Corporation, Philippines
- Directorate Of Revenue Intelligence - India
- Georgia Ports Authority, United States
- Ambuja Cements Ltd - India
- Jindal Steel & Power Ltd - India
- Petrochimia International Co. Ltd.- Taiwan
- SN Aboitiz Power Inc, Philippines
- Orica Australia Pty. Ltd.
- The Treasury - Australian Government
- Wood Mackenzie - Singapore
- Toyota Tsusho Corporation, Japan
- Bhatia International Limited - India
- Star Paper Mills Limited - India
- Mintek Dendrill Indonesia
- Videocon Industries ltd - India
- Chamber of Mines of South Africa
- Ministry of Transport, Egypt
- Timah Investasi Mineral - Indoneisa
- Singapore Mercantile Exchange
- Gujarat Sidhee Cement - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- ASAPP Information Group - India
- Makarim & Taira - Indonesia
- Independent Power Producers Association of India
- Madhucon Powers Ltd - India
- Krishnapatnam Port Company Ltd. - India
- Africa Commodities Group - South Africa
- Agrawal Coal Company - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Bahari Cakrawala Sebuku - Indonesia
- Port Waratah Coal Services - Australia
- Barasentosa Lestari - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- South Luzon Thermal Energy Corporation
- Thai Mozambique Logistica
- Vizag Seaport Private Limited - India
- Bukit Makmur.PT - Indonesia
- Eastern Energy - Thailand
- Orica Mining Services - Indonesia
- Global Business Power Corporation, Philippines
- Neyveli Lignite Corporation Ltd, - India
- Interocean Group of Companies - India
- Energy Development Corp, Philippines
- Simpson Spence & Young - Indonesia
- Merrill Lynch Commodities Europe
- MS Steel International - UAE
- Kartika Selabumi Mining - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Standard Chartered Bank - UAE
- Global Coal Blending Company Limited - Australia
- Kaltim Prima Coal - Indonesia
- San Jose City I Power Corp, Philippines
- Coastal Gujarat Power Limited - India
- Uttam Galva Steels Limited - India
- Directorate General of MIneral and Coal - Indonesia
- Sree Jayajothi Cements Limited - India
- Ministry of Finance - Indonesia
- Medco Energi Mining Internasional
- Sarangani Energy Corporation, Philippines
- Petron Corporation, Philippines
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