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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, 04 November 09
BAKRIE MAY WIN BERAU COAL BID FROM ARMADIAN
The Bakrie group is likely to be selected as buyer of PT Berau Coal, the country’s fifth-largest coal producer, two people familiar with the m ...
Wednesday, 04 November 09
BINANI HOPES TO BUY INDONESIAN COAL MINE IN 2-3 MONTHS
"We are still negotiating, but hope to conclude the deal in the next two to three months," Binani Cement Managing Director Vinod Juneja to ...
Tuesday, 03 November 09
CHINA TO BE NET COAL IMPORTER IN 2009
China is accelerating its importation of coal to cope with fallen output caused by the consolidation of small coalmines, and is likely to become a n ...
Monday, 02 November 09
RIO TINTO WARNS ON CHEAP MONGOLIAN COAL
The Age reported that, Mining giant Rio Tinto has warned that cheap coal from Mongolia as well as congestion at the Port of Newcastle in NSW could u ...
Monday, 02 November 09
ESSAR SEEKS COAL ASSETS IN SOUTH AFRICA
Paguntaka reported that, Essar Group plans to acquire coal assets in South Africa to help boost its power business in India. A senior executive of E ...
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- Sical Logistics Limited - India
- Metalloyd Limited - United Kingdom
- Rashtriya Ispat Nigam Limited - India
- Latin American Coal - Colombia
- Bank of Tokyo Mitsubishi UFJ Ltd
- New Zealand Coal & Carbon
- Videocon Industries ltd - India
- Kartika Selabumi Mining - Indonesia
- Price Waterhouse Coopers - Russia
- Leighton Contractors Pty Ltd - Australia
- Global Green Power PLC Corporation, Philippines
- Baramulti Group, Indonesia
- Lanco Infratech Ltd - India
- Petrochimia International Co. Ltd.- Taiwan
- Antam Resourcindo - Indonesia
- Pendopo Energi Batubara - Indonesia
- Orica Mining Services - Indonesia
- Mintek Dendrill Indonesia
- GVK Power & Infra Limited - India
- Australian Commodity Traders Exchange
- Ministry of Finance - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- San Jose City I Power Corp, Philippines
- Coastal Gujarat Power Limited - India
- GAC Shipping (India) Pvt Ltd
- AsiaOL BioFuels Corp., Philippines
- European Bulk Services B.V. - Netherlands
- Asmin Koalindo Tuhup - Indonesia
- Toyota Tsusho Corporation, Japan
- Medco Energi Mining Internasional
- Malabar Cements Ltd - India
- Standard Chartered Bank - UAE
- Chamber of Mines of South Africa
- Offshore Bulk Terminal Pte Ltd, Singapore
- Commonwealth Bank - Australia
- Eastern Coal Council - USA
- Cement Manufacturers Association - India
- Maharashtra Electricity Regulatory Commission - India
- Indian Energy Exchange, India
- Meralco Power Generation, Philippines
- Marubeni Corporation - India
- Savvy Resources Ltd - HongKong
- Merrill Lynch Commodities Europe
- Mercator Lines Limited - India
- Billiton Holdings Pty Ltd - Australia
- Bhatia International Limited - India
- Karaikal Port Pvt Ltd - India
- Vedanta Resources Plc - India
- Altura Mining Limited, Indonesia
- Central Java Power - Indonesia
- McConnell Dowell - Australia
- Maheswari Brothers Coal Limited - India
- Parry Sugars Refinery, India
- Tamil Nadu electricity Board
- TeaM Sual Corporation - Philippines
- Ind-Barath Power Infra Limited - India
- South Luzon Thermal Energy Corporation
- Bulk Trading Sa - Switzerland
- Georgia Ports Authority, United States
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- PetroVietnam Power Coal Import and Supply Company
- Thai Mozambique Logistica
- Miang Besar Coal Terminal - Indonesia
- Oldendorff Carriers - Singapore
- Interocean Group of Companies - India
- Indonesian Coal Mining Association
- Ministry of Mines - Canada
- Iligan Light & Power Inc, Philippines
- Salva Resources Pvt Ltd - India
- Pipit Mutiara Jaya. PT, Indonesia
- Sojitz Corporation - Japan
- Kumho Petrochemical, South Korea
- India Bulls Power Limited - India
- Coalindo Energy - Indonesia
- Essar Steel Hazira Ltd - India
- Coal and Oil Company - UAE
- Indogreen Group - Indonesia
- Parliament of New Zealand
- GN Power Mariveles Coal Plant, Philippines
- Kapuas Tunggal Persada - Indonesia
- Electricity Authority, New Zealand
- Mjunction Services Limited - India
- Makarim & Taira - Indonesia
- Sakthi Sugars Limited - India
- Indika Energy - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Borneo Indobara - Indonesia
- Bangladesh Power Developement Board
- Global Coal Blending Company Limited - Australia
- Heidelberg Cement - Germany
- Indo Tambangraya Megah - Indonesia
- Renaissance Capital - South Africa
- Riau Bara Harum - Indonesia
- Straits Asia Resources Limited - Singapore
- Ministry of Transport, Egypt
- Chettinad Cement Corporation Ltd - India
- Kalimantan Lumbung Energi - Indonesia
- Planning Commission, India
- Independent Power Producers Association of India
- Larsen & Toubro Limited - India
- Kobexindo Tractors - Indoneisa
- MS Steel International - UAE
- Aboitiz Power Corporation - Philippines
- GMR Energy Limited - India
- Bayan Resources Tbk. - Indonesia
- Port Waratah Coal Services - Australia
- OPG Power Generation Pvt Ltd - India
- PowerSource Philippines DevCo
- Vijayanagar Sugar Pvt Ltd - India
- Ambuja Cements Ltd - India
- Energy Development Corp, Philippines
- Binh Thuan Hamico - Vietnam
- Orica Australia Pty. Ltd.
- Krishnapatnam Port Company Ltd. - India
- Bhoruka Overseas - Indonesia
- Edison Trading Spa - Italy
- Jindal Steel & Power Ltd - India
- Kaltim Prima Coal - Indonesia
- Central Electricity Authority - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Globalindo Alam Lestari - Indonesia
- Petron Corporation, Philippines
- Gujarat Mineral Development Corp Ltd - India
- Samtan Co., Ltd - South Korea
- Manunggal Multi Energi - Indonesia
- Bukit Baiduri Energy - Indonesia
- Mercuria Energy - Indonesia
- SN Aboitiz Power Inc, Philippines
- Simpson Spence & Young - Indonesia
- Kideco Jaya Agung - Indonesia
- Singapore Mercantile Exchange
- Directorate General of MIneral and Coal - Indonesia
- VISA Power Limited - India
- Ceylon Electricity Board - Sri Lanka
- Deloitte Consulting - India
- International Coal Ventures Pvt Ltd - India
- Wilmar Investment Holdings
- Alfred C Toepfer International GmbH - Germany
- Anglo American - United Kingdom
- Xindia Steels Limited - India
- Cigading International Bulk Terminal - Indonesia
- Carbofer General Trading SA - India
- IHS Mccloskey Coal Group - USA
- Aditya Birla Group - India
- Agrawal Coal Company - India
- ICICI Bank Limited - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Banpu Public Company Limited - Thailand
- Uttam Galva Steels Limited - India
- Electricity Generating Authority of Thailand
- Wood Mackenzie - Singapore
- CNBM International Corporation - China
- Siam City Cement PLC, Thailand
- London Commodity Brokers - England
- Power Finance Corporation Ltd., India
- Sinarmas Energy and Mining - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- ASAPP Information Group - India
- The State Trading Corporation of India Ltd
- Madhucon Powers Ltd - India
- Tata Chemicals Ltd - India
- Jorong Barutama Greston.PT - Indonesia
- Jaiprakash Power Ventures ltd
- PNOC Exploration Corporation - Philippines
- The Treasury - Australian Government
- White Energy Company Limited
- Star Paper Mills Limited - India
- Goldman Sachs - Singapore
- Romanian Commodities Exchange
- Meenaskhi Energy Private Limited - India
- Dalmia Cement Bharat India
- Bahari Cakrawala Sebuku - Indonesia
- Posco Energy - South Korea
- Eastern Energy - Thailand
- SMG Consultants - Indonesia
- IEA Clean Coal Centre - UK
- Thiess Contractors Indonesia
- Global Business Power Corporation, Philippines
- Sree Jayajothi Cements Limited - India
- Vizag Seaport Private Limited - India
- Siam City Cement - Thailand
- Bharathi Cement Corporation - India
- Sarangani Energy Corporation, Philippines
- Rio Tinto Coal - Australia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Bukit Asam (Persero) Tbk - Indonesia
- Gujarat Sidhee Cement - India
- Neyveli Lignite Corporation Ltd, - India
- Bukit Makmur.PT - Indonesia
- Formosa Plastics Group - Taiwan
- LBH Netherlands Bv - Netherlands
- Therma Luzon, Inc, Philippines
- Gujarat Electricity Regulatory Commission - India
- PTC India Limited - India
- Economic Council, Georgia
- Barasentosa Lestari - Indonesia
- Directorate Of Revenue Intelligence - India
- Minerals Council of Australia
- Attock Cement Pakistan Limited
- Sindya Power Generating Company Private Ltd
- Timah Investasi Mineral - Indoneisa
- Holcim Trading Pte Ltd - Singapore
- Intertek Mineral Services - Indonesia
- Africa Commodities Group - South Africa
- CIMB Investment Bank - Malaysia
- Australian Coal Association
- Trasteel International SA, Italy
- Karbindo Abesyapradhi - Indoneisa
- Bhushan Steel Limited - India
- Indian Oil Corporation Limited
- Grasim Industreis Ltd - India
- Semirara Mining Corp, Philippines
- Energy Link Ltd, New Zealand
- SMC Global Power, Philippines
- Kohat Cement Company Ltd. - Pakistan
- The University of Queensland
- Kepco SPC Power Corporation, Philippines
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