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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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- Metalloyd Limited - United Kingdom
- ASAPP Information Group - India
- Barasentosa Lestari - Indonesia
- Interocean Group of Companies - India
- Wilmar Investment Holdings
- Minerals Council of Australia
- Indika Energy - Indonesia
- Bharathi Cement Corporation - India
- Directorate General of MIneral and Coal - Indonesia
- Straits Asia Resources Limited - Singapore
- London Commodity Brokers - England
- VISA Power Limited - India
- Indonesian Coal Mining Association
- Attock Cement Pakistan Limited
- Sojitz Corporation - Japan
- Borneo Indobara - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Pendopo Energi Batubara - Indonesia
- OPG Power Generation Pvt Ltd - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Bayan Resources Tbk. - Indonesia
- Bhushan Steel Limited - India
- PNOC Exploration Corporation - Philippines
- Ceylon Electricity Board - Sri Lanka
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Aboitiz Power Corporation - Philippines
- Siam City Cement - Thailand
- Rio Tinto Coal - Australia
- AsiaOL BioFuels Corp., Philippines
- Coastal Gujarat Power Limited - India
- Central Java Power - Indonesia
- Australian Commodity Traders Exchange
- Indo Tambangraya Megah - Indonesia
- Star Paper Mills Limited - India
- Merrill Lynch Commodities Europe
- Holcim Trading Pte Ltd - Singapore
- Kumho Petrochemical, South Korea
- Renaissance Capital - South Africa
- Neyveli Lignite Corporation Ltd, - India
- SMG Consultants - Indonesia
- Jindal Steel & Power Ltd - India
- MS Steel International - UAE
- Carbofer General Trading SA - India
- Heidelberg Cement - Germany
- Meenaskhi Energy Private Limited - India
- Savvy Resources Ltd - HongKong
- GMR Energy Limited - India
- PTC India Limited - India
- Cigading International Bulk Terminal - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Billiton Holdings Pty Ltd - Australia
- Kideco Jaya Agung - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- CIMB Investment Bank - Malaysia
- Makarim & Taira - Indonesia
- Thiess Contractors Indonesia
- Kepco SPC Power Corporation, Philippines
- The State Trading Corporation of India Ltd
- Energy Development Corp, Philippines
- Semirara Mining Corp, Philippines
- Miang Besar Coal Terminal - Indonesia
- Tata Chemicals Ltd - India
- Directorate Of Revenue Intelligence - India
- Tamil Nadu electricity Board
- Oldendorff Carriers - Singapore
- Petron Corporation, Philippines
- Sinarmas Energy and Mining - Indonesia
- Kobexindo Tractors - Indoneisa
- Chettinad Cement Corporation Ltd - India
- Xindia Steels Limited - India
- Goldman Sachs - Singapore
- Kohat Cement Company Ltd. - Pakistan
- Alfred C Toepfer International GmbH - Germany
- Anglo American - United Kingdom
- The Treasury - Australian Government
- Altura Mining Limited, Indonesia
- Bulk Trading Sa - Switzerland
- SN Aboitiz Power Inc, Philippines
- Agrawal Coal Company - India
- Indogreen Group - Indonesia
- Parliament of New Zealand
- Krishnapatnam Port Company Ltd. - India
- Price Waterhouse Coopers - Russia
- Ambuja Cements Ltd - India
- Georgia Ports Authority, United States
- Essar Steel Hazira Ltd - India
- Power Finance Corporation Ltd., India
- Sakthi Sugars Limited - India
- Energy Link Ltd, New Zealand
- Vedanta Resources Plc - India
- Mercator Lines Limited - India
- Bahari Cakrawala Sebuku - Indonesia
- Planning Commission, India
- Trasteel International SA, Italy
- San Jose City I Power Corp, Philippines
- Karbindo Abesyapradhi - Indoneisa
- Jorong Barutama Greston.PT - Indonesia
- International Coal Ventures Pvt Ltd - India
- Africa Commodities Group - South Africa
- Timah Investasi Mineral - Indoneisa
- Videocon Industries ltd - India
- Siam City Cement PLC, Thailand
- Australian Coal Association
- Eastern Energy - Thailand
- Mercuria Energy - Indonesia
- Edison Trading Spa - Italy
- South Luzon Thermal Energy Corporation
- Bukit Baiduri Energy - Indonesia
- White Energy Company Limited
- Sree Jayajothi Cements Limited - India
- Grasim Industreis Ltd - India
- Ind-Barath Power Infra Limited - India
- The University of Queensland
- Kapuas Tunggal Persada - Indonesia
- Medco Energi Mining Internasional
- Uttam Galva Steels Limited - India
- TNB Fuel Sdn Bhd - Malaysia
- Bangladesh Power Developement Board
- Latin American Coal - Colombia
- Port Waratah Coal Services - Australia
- IEA Clean Coal Centre - UK
- Dalmia Cement Bharat India
- Posco Energy - South Korea
- Therma Luzon, Inc, Philippines
- McConnell Dowell - Australia
- Simpson Spence & Young - Indonesia
- Sical Logistics Limited - India
- Madhucon Powers Ltd - India
- Iligan Light & Power Inc, Philippines
- Intertek Mineral Services - Indonesia
- Singapore Mercantile Exchange
- Electricity Generating Authority of Thailand
- Salva Resources Pvt Ltd - India
- GVK Power & Infra Limited - India
- Global Business Power Corporation, Philippines
- Gujarat Mineral Development Corp Ltd - India
- Sarangani Energy Corporation, Philippines
- Gujarat Sidhee Cement - India
- Maharashtra Electricity Regulatory Commission - India
- Orica Australia Pty. Ltd.
- Banpu Public Company Limited - Thailand
- Economic Council, Georgia
- Larsen & Toubro Limited - India
- India Bulls Power Limited - India
- Bhoruka Overseas - Indonesia
- Globalindo Alam Lestari - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Thai Mozambique Logistica
- Baramulti Group, Indonesia
- Kartika Selabumi Mining - Indonesia
- Mjunction Services Limited - India
- Ministry of Transport, Egypt
- Manunggal Multi Energi - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Central Electricity Authority - India
- Deloitte Consulting - India
- Indian Oil Corporation Limited
- New Zealand Coal & Carbon
- Meralco Power Generation, Philippines
- Asmin Koalindo Tuhup - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Bhatia International Limited - India
- Global Coal Blending Company Limited - Australia
- LBH Netherlands Bv - Netherlands
- Antam Resourcindo - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Petrochimia International Co. Ltd.- Taiwan
- Electricity Authority, New Zealand
- Malabar Cements Ltd - India
- Karaikal Port Pvt Ltd - India
- Ministry of Mines - Canada
- Maheswari Brothers Coal Limited - India
- Jaiprakash Power Ventures ltd
- Coalindo Energy - Indonesia
- Cement Manufacturers Association - India
- ICICI Bank Limited - India
- Pipit Mutiara Jaya. PT, Indonesia
- Formosa Plastics Group - Taiwan
- PowerSource Philippines DevCo
- Sindya Power Generating Company Private Ltd
- Lanco Infratech Ltd - India
- Mintek Dendrill Indonesia
- Binh Thuan Hamico - Vietnam
- Bukit Makmur.PT - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Standard Chartered Bank - UAE
- Wood Mackenzie - Singapore
- Global Green Power PLC Corporation, Philippines
- Independent Power Producers Association of India
- Orica Mining Services - Indonesia
- CNBM International Corporation - China
- Ministry of Finance - Indonesia
- Kaltim Prima Coal - Indonesia
- Riau Bara Harum - Indonesia
- Coal and Oil Company - UAE
- Chamber of Mines of South Africa
- GAC Shipping (India) Pvt Ltd
- SMC Global Power, Philippines
- Romanian Commodities Exchange
- Offshore Bulk Terminal Pte Ltd, Singapore
- Indian Energy Exchange, India
- Vizag Seaport Private Limited - India
- Marubeni Corporation - India
- Gujarat Electricity Regulatory Commission - India
- Samtan Co., Ltd - South Korea
- IHS Mccloskey Coal Group - USA
- Bank of Tokyo Mitsubishi UFJ Ltd
- Eastern Coal Council - USA
- Aditya Birla Group - India
- European Bulk Services B.V. - Netherlands
- Parry Sugars Refinery, India
- Rashtriya Ispat Nigam Limited - India
- Commonwealth Bank - Australia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- TeaM Sual Corporation - Philippines
- Toyota Tsusho Corporation, Japan
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