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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 $5.5 billion.
Pardomuan said he thought commodity prices, particularly energy prices, would remain cheap prior to a full global economic recovery.
He added that information available on the Bumi-CIC deal was incomplete, and he expected Bumi to make further public disclosures about it soon.
In June, Bumi won shareholder approval to pledge the assets of two coal miners, PT Kaltim Prima Coal and PT Arutmin Indonesia, and one noncoal miner, Australian-based Herald Resources, for more loans, the amount of which the company did not disclose at the time.
Bumi’s shares have more than tripled in price this year, making it the best-performing stock in the 19-stock MSCI Indonesia Index.
Source: The Jakarta Globe
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Monday, 07 December 09
VEDANTA RESOURCES ISSUES TENDER TO IMPORT 2.25 MILLION COAL
COALspot.com (India): Vedanta Resources plc is a London stock exchange listed FTSE 100 diversified metals and mining major with revenues in excess o ...
Monday, 07 December 09
CHINA COKING COAL PRICE MAY RISE 14% ON DEFICIT, CITIGROUP SAYS
Coking coal prices in China, the world’s biggest steel producer, may rise 14 percent next year because of a supply deficit, Citigroup Inc. sai ...
Monday, 07 December 09
JSW STEEL TO SELL MOZAMBIQUE COAL MINE FOR RS 300 CRORE
JSW Steel may sell its coal mine in Mozambique to sister company JSW Energy as the mine has become commercially unviable for the steel producer, a t ...
Monday, 07 December 09
BLACK RIDGE MINING ENTERS AGREEMENT WITH INDONESIAN COAL PRODUCER
Australian-listed Black Ridge Mining has entered into an exclusive dealing and non-circumvention agreement with Indonesian coal producer PT. Inmas A ...
Sunday, 06 December 09
THE ECI / CHINA (S7) ROUTE SOFTENED AND WAS AT US$ 25,275 PER DAY - VISTAAR
COALspot.com (Singapore): "The market was bit soft in the beginning of the week, however towards mid week that market started to pick up and th ...
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- Energy Development Corp, Philippines
- LBH Netherlands Bv - Netherlands
- Indonesian Coal Mining Association
- Timah Investasi Mineral - Indoneisa
- Economic Council, Georgia
- Georgia Ports Authority, United States
- Orica Mining Services - Indonesia
- Altura Mining Limited, Indonesia
- PTC India Limited - India
- Krishnapatnam Port Company Ltd. - India
- Kumho Petrochemical, South Korea
- Semirara Mining Corp, Philippines
- Chettinad Cement Corporation Ltd - India
- MS Steel International - UAE
- The State Trading Corporation of India Ltd
- Pendopo Energi Batubara - Indonesia
- Kapuas Tunggal Persada - Indonesia
- Gujarat Sidhee Cement - India
- Eastern Energy - Thailand
- Miang Besar Coal Terminal - Indonesia
- Meenaskhi Energy Private Limited - India
- Australian Commodity Traders Exchange
- Makarim & Taira - Indonesia
- Independent Power Producers Association of India
- Bukit Makmur.PT - Indonesia
- Straits Asia Resources Limited - Singapore
- Jorong Barutama Greston.PT - Indonesia
- Oldendorff Carriers - Singapore
- Meralco Power Generation, Philippines
- Globalindo Alam Lestari - Indonesia
- Binh Thuan Hamico - Vietnam
- Leighton Contractors Pty Ltd - Australia
- PNOC Exploration Corporation - Philippines
- Standard Chartered Bank - UAE
- Indo Tambangraya Megah - Indonesia
- The Treasury - Australian Government
- Indian Oil Corporation Limited
- Kaltim Prima Coal - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Bahari Cakrawala Sebuku - Indonesia
- McConnell Dowell - Australia
- Global Coal Blending Company Limited - Australia
- Heidelberg Cement - Germany
- Borneo Indobara - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Bank of Tokyo Mitsubishi UFJ Ltd
- Asmin Koalindo Tuhup - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- IEA Clean Coal Centre - UK
- Price Waterhouse Coopers - Russia
- Rashtriya Ispat Nigam Limited - India
- Carbofer General Trading SA - India
- Metalloyd Limited - United Kingdom
- Coalindo Energy - Indonesia
- TeaM Sual Corporation - Philippines
- Simpson Spence & Young - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Antam Resourcindo - Indonesia
- Riau Bara Harum - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Grasim Industreis Ltd - India
- Vizag Seaport Private Limited - India
- Australian Coal Association
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Africa Commodities Group - South Africa
- Posco Energy - South Korea
- Power Finance Corporation Ltd., India
- Maheswari Brothers Coal Limited - India
- Cigading International Bulk Terminal - Indonesia
- Madhucon Powers Ltd - India
- GVK Power & Infra Limited - India
- Intertek Mineral Services - Indonesia
- Aditya Birla Group - India
- Cement Manufacturers Association - India
- Karbindo Abesyapradhi - Indoneisa
- International Coal Ventures Pvt Ltd - India
- Trasteel International SA, Italy
- Ambuja Cements Ltd - India
- European Bulk Services B.V. - Netherlands
- IHS Mccloskey Coal Group - USA
- Coal and Oil Company - UAE
- Kohat Cement Company Ltd. - Pakistan
- Semirara Mining and Power Corporation, Philippines
- Directorate General of MIneral and Coal - Indonesia
- ASAPP Information Group - India
- SMC Global Power, Philippines
- Vedanta Resources Plc - India
- Thiess Contractors Indonesia
- Formosa Plastics Group - Taiwan
- Jindal Steel & Power Ltd - India
- Dalmia Cement Bharat India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Deloitte Consulting - India
- Malabar Cements Ltd - India
- Agrawal Coal Company - India
- Bangladesh Power Developement Board
- Sinarmas Energy and Mining - Indonesia
- Electricity Generating Authority of Thailand
- New Zealand Coal & Carbon
- Marubeni Corporation - India
- San Jose City I Power Corp, Philippines
- Wilmar Investment Holdings
- Uttam Galva Steels Limited - India
- Electricity Authority, New Zealand
- Essar Steel Hazira Ltd - India
- Merrill Lynch Commodities Europe
- Petrochimia International Co. Ltd.- Taiwan
- Gujarat Electricity Regulatory Commission - India
- Mintek Dendrill Indonesia
- Xindia Steels Limited - India
- SMG Consultants - Indonesia
- Sakthi Sugars Limited - India
- Ministry of Mines - Canada
- Videocon Industries ltd - India
- The University of Queensland
- Bayan Resources Tbk. - Indonesia
- Ceylon Electricity Board - Sri Lanka
- South Luzon Thermal Energy Corporation
- Ind-Barath Power Infra Limited - India
- Mercator Lines Limited - India
- VISA Power Limited - India
- ICICI Bank Limited - India
- Larsen & Toubro Limited - India
- Kideco Jaya Agung - Indonesia
- Sarangani Energy Corporation, Philippines
- SN Aboitiz Power Inc, Philippines
- Bukit Baiduri Energy - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Interocean Group of Companies - India
- Latin American Coal - Colombia
- Edison Trading Spa - Italy
- Maharashtra Electricity Regulatory Commission - India
- Global Business Power Corporation, Philippines
- Singapore Mercantile Exchange
- CNBM International Corporation - China
- CIMB Investment Bank - Malaysia
- Therma Luzon, Inc, Philippines
- Jaiprakash Power Ventures ltd
- Coastal Gujarat Power Limited - India
- AsiaOL BioFuels Corp., Philippines
- White Energy Company Limited
- Lanco Infratech Ltd - India
- Anglo American - United Kingdom
- Manunggal Multi Energi - Indonesia
- Billiton Holdings Pty Ltd - Australia
- PetroVietnam Power Coal Import and Supply Company
- Karaikal Port Pvt Ltd - India
- Banpu Public Company Limited - Thailand
- Energy Link Ltd, New Zealand
- Medco Energi Mining Internasional
- Sindya Power Generating Company Private Ltd
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- GMR Energy Limited - India
- Kobexindo Tractors - Indoneisa
- Holcim Trading Pte Ltd - Singapore
- TNB Fuel Sdn Bhd - Malaysia
- Port Waratah Coal Services - Australia
- Sree Jayajothi Cements Limited - India
- GN Power Mariveles Coal Plant, Philippines
- Romanian Commodities Exchange
- Savvy Resources Ltd - HongKong
- Attock Cement Pakistan Limited
- Parry Sugars Refinery, India
- Aboitiz Power Corporation - Philippines
- Commonwealth Bank - Australia
- Kartika Selabumi Mining - Indonesia
- Indian Energy Exchange, India
- Goldman Sachs - Singapore
- Thai Mozambique Logistica
- Bukit Asam (Persero) Tbk - Indonesia
- Directorate Of Revenue Intelligence - India
- Alfred C Toepfer International GmbH - Germany
- Rio Tinto Coal - Australia
- Iligan Light & Power Inc, Philippines
- GAC Shipping (India) Pvt Ltd
- Tamil Nadu electricity Board
- Central Java Power - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- London Commodity Brokers - England
- Siam City Cement - Thailand
- Bulk Trading Sa - Switzerland
- Orica Australia Pty. Ltd.
- OPG Power Generation Pvt Ltd - India
- Bharathi Cement Corporation - India
- Planning Commission, India
- Indogreen Group - Indonesia
- Tata Chemicals Ltd - India
- Mercuria Energy - Indonesia
- Ministry of Transport, Egypt
- India Bulls Power Limited - India
- Salva Resources Pvt Ltd - India
- Ministry of Finance - Indonesia
- Eastern Coal Council - USA
- Minerals Council of Australia
- Neyveli Lignite Corporation Ltd, - India
- Toyota Tsusho Corporation, Japan
- Central Electricity Authority - India
- Bhatia International Limited - India
- Renaissance Capital - South Africa
- PowerSource Philippines DevCo
- Parliament of New Zealand
- Indika Energy - Indonesia
- Global Green Power PLC Corporation, Philippines
- Mjunction Services Limited - India
- Star Paper Mills Limited - India
- Bhoruka Overseas - Indonesia
- Barasentosa Lestari - Indonesia
- Sical Logistics Limited - India
- Bhushan Steel Limited - India
- Siam City Cement PLC, Thailand
- Wood Mackenzie - Singapore
- Baramulti Group, Indonesia
- Sojitz Corporation - Japan
- Kepco SPC Power Corporation, Philippines
- Petron Corporation, Philippines
- Chamber of Mines of South Africa
- Samtan Co., Ltd - South Korea
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