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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, 21 October 09
LAW ACCOMMODATES NATIONAL AND INVESTOR INTERESTS
COALspot.com (Indonesia): According to ESDM, the government has issued five Lawson the energy and mineral resources sector. These laws will prioriti ...
Wednesday, 21 October 09
INDONESIA'S BUKIT ASAM GETS COAL RAILWAY APPROVAL
Reuters reported that, Indonesian state coal miner PT Tambang Batubara Bukit Asam Tbk said on Wednesday it had been given government approval to sta ...
Wednesday, 21 October 09
COAL DEMAND SOARS AS ASIA ECONOMIES REBOUND - PEABODY
Reuters reported that, Demand for coal to generate electricity and make steel in China and India is expected to grow by 7 percent to 8 percent annua ...
Wednesday, 21 October 09
INDONESIAN SHOCK FOR INDIAN POWER PLANTS
Business-Standard reported that, India’s ambitious plans to generate an additional 180,000 Mw of power in the next seven years will face hurdl ...
Wednesday, 21 October 09
DUTA GRAHA PLANNING TO DELVE INTO MINING SECTOR
The Jakarta Globe reported that, PT Duta Graha, one of the country’s largest private engineering firms, says it intends to diversify into the ...
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- PTC India Limited - India
- The Treasury - Australian Government
- Lanco Infratech Ltd - India
- Ministry of Mines - Canada
- Mercator Lines Limited - India
- SMG Consultants - Indonesia
- Agrawal Coal Company - India
- Georgia Ports Authority, United States
- European Bulk Services B.V. - Netherlands
- Petron Corporation, Philippines
- India Bulls Power Limited - India
- Iligan Light & Power Inc, Philippines
- Attock Cement Pakistan Limited
- Bukit Asam (Persero) Tbk - Indonesia
- Aditya Birla Group - India
- Kobexindo Tractors - Indoneisa
- Cement Manufacturers Association - India
- Madhucon Powers Ltd - India
- ICICI Bank Limited - India
- Bukit Baiduri Energy - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Thiess Contractors Indonesia
- Thai Mozambique Logistica
- The University of Queensland
- PNOC Exploration Corporation - Philippines
- Australian Commodity Traders Exchange
- Coalindo Energy - Indonesia
- Gujarat Sidhee Cement - India
- Kartika Selabumi Mining - Indonesia
- Antam Resourcindo - Indonesia
- Deloitte Consulting - India
- Aboitiz Power Corporation - Philippines
- Miang Besar Coal Terminal - Indonesia
- Kepco SPC Power Corporation, Philippines
- Videocon Industries ltd - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Wood Mackenzie - Singapore
- Minerals Council of Australia
- Siam City Cement - Thailand
- Sojitz Corporation - Japan
- Indika Energy - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- GVK Power & Infra Limited - India
- Bulk Trading Sa - Switzerland
- Borneo Indobara - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Chamber of Mines of South Africa
- Semirara Mining Corp, Philippines
- Salva Resources Pvt Ltd - India
- Ambuja Cements Ltd - India
- Electricity Authority, New Zealand
- Bhatia International Limited - India
- GMR Energy Limited - India
- Cigading International Bulk Terminal - Indonesia
- Rashtriya Ispat Nigam Limited - India
- Holcim Trading Pte Ltd - Singapore
- Xindia Steels Limited - India
- PetroVietnam Power Coal Import and Supply Company
- Formosa Plastics Group - Taiwan
- Romanian Commodities Exchange
- Mjunction Services Limited - India
- Orica Mining Services - Indonesia
- Grasim Industreis Ltd - India
- Sical Logistics Limited - India
- Marubeni Corporation - India
- Maharashtra Electricity Regulatory Commission - India
- MS Steel International - UAE
- South Luzon Thermal Energy Corporation
- Indian Energy Exchange, India
- Bahari Cakrawala Sebuku - Indonesia
- Coal and Oil Company - UAE
- The State Trading Corporation of India Ltd
- Banpu Public Company Limited - Thailand
- CNBM International Corporation - China
- Manunggal Multi Energi - Indonesia
- Price Waterhouse Coopers - Russia
- Vedanta Resources Plc - India
- Singapore Mercantile Exchange
- Neyveli Lignite Corporation Ltd, - India
- Indonesian Coal Mining Association
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Timah Investasi Mineral - Indoneisa
- Pipit Mutiara Jaya. PT, Indonesia
- Medco Energi Mining Internasional
- Economic Council, Georgia
- Straits Asia Resources Limited - Singapore
- Meenaskhi Energy Private Limited - India
- Global Coal Blending Company Limited - Australia
- OPG Power Generation Pvt Ltd - India
- Trasteel International SA, Italy
- Goldman Sachs - Singapore
- IEA Clean Coal Centre - UK
- Posco Energy - South Korea
- Bangladesh Power Developement Board
- Maheswari Brothers Coal Limited - India
- Siam City Cement PLC, Thailand
- Bukit Makmur.PT - Indonesia
- International Coal Ventures Pvt Ltd - India
- Jindal Steel & Power Ltd - India
- Orica Australia Pty. Ltd.
- Parliament of New Zealand
- Eastern Energy - Thailand
- Sindya Power Generating Company Private Ltd
- Pendopo Energi Batubara - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Indogreen Group - Indonesia
- Bhoruka Overseas - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- LBH Netherlands Bv - Netherlands
- Samtan Co., Ltd - South Korea
- Sakthi Sugars Limited - India
- Electricity Generating Authority of Thailand
- Baramulti Group, Indonesia
- Metalloyd Limited - United Kingdom
- Directorate General of MIneral and Coal - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Star Paper Mills Limited - India
- GAC Shipping (India) Pvt Ltd
- Vijayanagar Sugar Pvt Ltd - India
- Edison Trading Spa - Italy
- Ministry of Transport, Egypt
- Ceylon Electricity Board - Sri Lanka
- San Jose City I Power Corp, Philippines
- Anglo American - United Kingdom
- Eastern Coal Council - USA
- SN Aboitiz Power Inc, Philippines
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Commonwealth Bank - Australia
- Central Electricity Authority - India
- Kalimantan Lumbung Energi - Indonesia
- Africa Commodities Group - South Africa
- Krishnapatnam Port Company Ltd. - India
- Central Java Power - Indonesia
- Jaiprakash Power Ventures ltd
- Power Finance Corporation Ltd., India
- VISA Power Limited - India
- TNB Fuel Sdn Bhd - Malaysia
- Altura Mining Limited, Indonesia
- Directorate Of Revenue Intelligence - India
- Latin American Coal - Colombia
- Dalmia Cement Bharat India
- Tamil Nadu electricity Board
- Offshore Bulk Terminal Pte Ltd, Singapore
- New Zealand Coal & Carbon
- Energy Development Corp, Philippines
- White Energy Company Limited
- Tata Chemicals Ltd - India
- Essar Steel Hazira Ltd - India
- McConnell Dowell - Australia
- Asmin Koalindo Tuhup - Indonesia
- Indian Oil Corporation Limited
- Therma Luzon, Inc, Philippines
- Renaissance Capital - South Africa
- Rio Tinto Coal - Australia
- Bayan Resources Tbk. - Indonesia
- Kaltim Prima Coal - Indonesia
- Barasentosa Lestari - Indonesia
- Energy Link Ltd, New Zealand
- Malabar Cements Ltd - India
- Alfred C Toepfer International GmbH - Germany
- Carbofer General Trading SA - India
- CIMB Investment Bank - Malaysia
- Riau Bara Harum - Indonesia
- Global Business Power Corporation, Philippines
- Ind-Barath Power Infra Limited - India
- SMC Global Power, Philippines
- Wilmar Investment Holdings
- Ministry of Finance - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Heidelberg Cement - Germany
- Coastal Gujarat Power Limited - India
- Independent Power Producers Association of India
- Merrill Lynch Commodities Europe
- Planning Commission, India
- Chettinad Cement Corporation Ltd - India
- Standard Chartered Bank - UAE
- Makarim & Taira - Indonesia
- ASAPP Information Group - India
- PowerSource Philippines DevCo
- Kapuas Tunggal Persada - Indonesia
- Vizag Seaport Private Limited - India
- Bhushan Steel Limited - India
- TeaM Sual Corporation - Philippines
- Globalindo Alam Lestari - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Sinarmas Energy and Mining - Indonesia
- Kideco Jaya Agung - Indonesia
- Meralco Power Generation, Philippines
- Global Green Power PLC Corporation, Philippines
- Sarangani Energy Corporation, Philippines
- Oldendorff Carriers - Singapore
- Australian Coal Association
- Leighton Contractors Pty Ltd - Australia
- Uttam Galva Steels Limited - India
- Bharathi Cement Corporation - India
- Savvy Resources Ltd - HongKong
- London Commodity Brokers - England
- Kohat Cement Company Ltd. - Pakistan
- Gujarat Electricity Regulatory Commission - India
- Interocean Group of Companies - India
- Intertek Mineral Services - Indonesia
- Larsen & Toubro Limited - India
- Port Waratah Coal Services - Australia
- Karaikal Port Pvt Ltd - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Binh Thuan Hamico - Vietnam
- Sree Jayajothi Cements Limited - India
- Kumho Petrochemical, South Korea
- Mintek Dendrill Indonesia
- Mercuria Energy - Indonesia
- IHS Mccloskey Coal Group - USA
- Toyota Tsusho Corporation, Japan
- Simpson Spence & Young - Indonesia
- Indo Tambangraya Megah - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Parry Sugars Refinery, India
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