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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, 19 October 09
CEMENT UNLIKELY TO COST MORE DESPITE COAL PRICE HIKE
Business-Standard reported that, Cement manufacturers will not immediately hike prices of the construction material, despite a surge in their input ...
Saturday, 17 October 09
US COAL MINERS LOOKING AT LOWER PROFITS
Most US coal miners are looking at sharply lower third-quarter earnings, but those that produce coal for steelmaking and export should enjoy higher ...
Friday, 16 October 09
INDONESIA EXPORTED 19,194,857 MT OF COAL IN SEPTEMBER 2009 - SOURCES
COALspot.com (Indonesia): Indonesia exported 19,194,857 MT of coal in September 2009. Out of total exported quantity, South Korea imported abou ...
Friday, 16 October 09
NAVIGATING THROUGH STORMY WATERS
To Theodore E Veniamis, the President of the Union of Greek Shipowners, the current turmoil in world shipping is due to the cyclical nature of marit ...
Friday, 16 October 09
COAL INDIA RAISES PRICE BY 11%
Trak reported that, State-owned Coal India Ltd (CIL) has raised the price of coal produced by its subsidiaries by an average of 11 percent effective ...
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- Indian Energy Exchange, India
- Posco Energy - South Korea
- GN Power Mariveles Coal Plant, Philippines
- SMC Global Power, Philippines
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- IEA Clean Coal Centre - UK
- Electricity Authority, New Zealand
- Petron Corporation, Philippines
- Directorate Of Revenue Intelligence - India
- Sinarmas Energy and Mining - Indonesia
- Eastern Energy - Thailand
- PNOC Exploration Corporation - Philippines
- Thai Mozambique Logistica
- Thiess Contractors Indonesia
- GMR Energy Limited - India
- Global Business Power Corporation, Philippines
- Indo Tambangraya Megah - Indonesia
- Pendopo Energi Batubara - Indonesia
- Sarangani Energy Corporation, Philippines
- Bank of Tokyo Mitsubishi UFJ Ltd
- Mercuria Energy - Indonesia
- South Luzon Thermal Energy Corporation
- Sical Logistics Limited - India
- Bangladesh Power Developement Board
- Deloitte Consulting - India
- Ambuja Cements Ltd - India
- Kohat Cement Company Ltd. - Pakistan
- Uttam Galva Steels Limited - India
- Vizag Seaport Private Limited - India
- Africa Commodities Group - South Africa
- Carbofer General Trading SA - India
- Bukit Asam (Persero) Tbk - Indonesia
- Minerals Council of Australia
- Metalloyd Limited - United Kingdom
- CIMB Investment Bank - Malaysia
- Semirara Mining and Power Corporation, Philippines
- Maheswari Brothers Coal Limited - India
- Essar Steel Hazira Ltd - India
- Bahari Cakrawala Sebuku - Indonesia
- Therma Luzon, Inc, Philippines
- Larsen & Toubro Limited - India
- Binh Thuan Hamico - Vietnam
- Straits Asia Resources Limited - Singapore
- Indonesian Coal Mining Association
- Ceylon Electricity Board - Sri Lanka
- Alfred C Toepfer International GmbH - Germany
- Mjunction Services Limited - India
- Sree Jayajothi Cements Limited - India
- Neyveli Lignite Corporation Ltd, - India
- Global Green Power PLC Corporation, Philippines
- Standard Chartered Bank - UAE
- Medco Energi Mining Internasional
- Gujarat Electricity Regulatory Commission - India
- Gujarat Mineral Development Corp Ltd - India
- Bhushan Steel Limited - India
- Malabar Cements Ltd - India
- Simpson Spence & Young - Indonesia
- Barasentosa Lestari - Indonesia
- Tata Chemicals Ltd - India
- Latin American Coal - Colombia
- TeaM Sual Corporation - Philippines
- AsiaOL BioFuels Corp., Philippines
- Oldendorff Carriers - Singapore
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Timah Investasi Mineral - Indoneisa
- Xindia Steels Limited - India
- SMG Consultants - Indonesia
- PTC India Limited - India
- Heidelberg Cement - Germany
- Samtan Co., Ltd - South Korea
- CNBM International Corporation - China
- Bharathi Cement Corporation - India
- India Bulls Power Limited - India
- IHS Mccloskey Coal Group - USA
- Banpu Public Company Limited - Thailand
- Price Waterhouse Coopers - Russia
- Singapore Mercantile Exchange
- Indika Energy - Indonesia
- Anglo American - United Kingdom
- Offshore Bulk Terminal Pte Ltd, Singapore
- Bayan Resources Tbk. - Indonesia
- International Coal Ventures Pvt Ltd - India
- Pipit Mutiara Jaya. PT, Indonesia
- Globalindo Alam Lestari - Indonesia
- PowerSource Philippines DevCo
- Edison Trading Spa - Italy
- ASAPP Information Group - India
- Altura Mining Limited, Indonesia
- Chamber of Mines of South Africa
- Parliament of New Zealand
- Orica Australia Pty. Ltd.
- Leighton Contractors Pty Ltd - Australia
- Holcim Trading Pte Ltd - Singapore
- Aboitiz Power Corporation - Philippines
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Kepco SPC Power Corporation, Philippines
- MS Steel International - UAE
- Indogreen Group - Indonesia
- Kapuas Tunggal Persada - Indonesia
- Riau Bara Harum - Indonesia
- Coastal Gujarat Power Limited - India
- Jorong Barutama Greston.PT - Indonesia
- Gujarat Sidhee Cement - India
- Coal and Oil Company - UAE
- Romanian Commodities Exchange
- Power Finance Corporation Ltd., India
- Coalindo Energy - Indonesia
- Trasteel International SA, Italy
- New Zealand Coal & Carbon
- Bhatia International Limited - India
- Goldman Sachs - Singapore
- Merrill Lynch Commodities Europe
- The Treasury - Australian Government
- Jindal Steel & Power Ltd - India
- Global Coal Blending Company Limited - Australia
- Interocean Group of Companies - India
- Krishnapatnam Port Company Ltd. - India
- Georgia Ports Authority, United States
- Mercator Lines Limited - India
- Bhoruka Overseas - Indonesia
- Energy Link Ltd, New Zealand
- Makarim & Taira - Indonesia
- Central Electricity Authority - India
- Wood Mackenzie - Singapore
- McConnell Dowell - Australia
- Vedanta Resources Plc - India
- Madhucon Powers Ltd - India
- The State Trading Corporation of India Ltd
- Central Java Power - Indonesia
- Cement Manufacturers Association - India
- Parry Sugars Refinery, India
- Mintek Dendrill Indonesia
- Miang Besar Coal Terminal - Indonesia
- Commonwealth Bank - Australia
- Billiton Holdings Pty Ltd - Australia
- Toyota Tsusho Corporation, Japan
- Aditya Birla Group - India
- Bukit Baiduri Energy - Indonesia
- Meralco Power Generation, Philippines
- White Energy Company Limited
- Sakthi Sugars Limited - India
- Kumho Petrochemical, South Korea
- Kartika Selabumi Mining - Indonesia
- Kideco Jaya Agung - Indonesia
- GVK Power & Infra Limited - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Asmin Koalindo Tuhup - Indonesia
- Siam City Cement - Thailand
- Ministry of Mines - Canada
- TNB Fuel Sdn Bhd - Malaysia
- Agrawal Coal Company - India
- ICICI Bank Limited - India
- Antam Resourcindo - Indonesia
- Ministry of Finance - Indonesia
- Orica Mining Services - Indonesia
- Ind-Barath Power Infra Limited - India
- Independent Power Producers Association of India
- Planning Commission, India
- Cigading International Bulk Terminal - Indonesia
- Videocon Industries ltd - India
- Maharashtra Electricity Regulatory Commission - India
- GAC Shipping (India) Pvt Ltd
- Australian Coal Association
- PetroVietnam Power Coal Import and Supply Company
- Directorate General of MIneral and Coal - Indonesia
- London Commodity Brokers - England
- Jaiprakash Power Ventures ltd
- Borneo Indobara - Indonesia
- Attock Cement Pakistan Limited
- Lanco Infratech Ltd - India
- Indian Oil Corporation Limited
- Manunggal Multi Energi - Indonesia
- Rashtriya Ispat Nigam Limited - India
- Sindya Power Generating Company Private Ltd
- Salva Resources Pvt Ltd - India
- Bulk Trading Sa - Switzerland
- The University of Queensland
- Kobexindo Tractors - Indoneisa
- Star Paper Mills Limited - India
- Chettinad Cement Corporation Ltd - India
- Iligan Light & Power Inc, Philippines
- European Bulk Services B.V. - Netherlands
- Dalmia Cement Bharat India
- LBH Netherlands Bv - Netherlands
- Marubeni Corporation - India
- Kaltim Prima Coal - Indonesia
- Rio Tinto Coal - Australia
- Karbindo Abesyapradhi - Indoneisa
- Renaissance Capital - South Africa
- Wilmar Investment Holdings
- Economic Council, Georgia
- Meenaskhi Energy Private Limited - India
- Formosa Plastics Group - Taiwan
- Karaikal Port Pvt Ltd - India
- Petrochimia International Co. Ltd.- Taiwan
- Vijayanagar Sugar Pvt Ltd - India
- Siam City Cement PLC, Thailand
- Electricity Generating Authority of Thailand
- VISA Power Limited - India
- Sojitz Corporation - Japan
- San Jose City I Power Corp, Philippines
- Energy Development Corp, Philippines
- Savvy Resources Ltd - HongKong
- Port Waratah Coal Services - Australia
- OPG Power Generation Pvt Ltd - India
- Eastern Coal Council - USA
- Baramulti Group, Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Australian Commodity Traders Exchange
- Tamil Nadu electricity Board
- Intertek Mineral Services - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Bukit Makmur.PT - Indonesia
- SN Aboitiz Power Inc, Philippines
- Semirara Mining Corp, Philippines
- Ministry of Transport, Egypt
- Grasim Industreis Ltd - India
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