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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, 14 October 09
INDONESIA MULLS TO LIMIT COAL EXPORT
China View reported that, The Indonesian government planned to limit coal export of up to 150 million tons per year due to the growing coal demand i ...
Wednesday, 14 October 09
SA'S COAL OUTPUT LIKELY TO RISE BY 2011, BOOSTED BY WATERBERG MINES
Mining weekly reported that, South Africa's coal production will struggle to meet demand over the next few years, but coal production could likely ...
Tuesday, 13 October 09
INDONESIA'S BAYAN SEES 2010 COAL OUTPUT UP 42 PCT
Reuters reported that, Indonesian coal miner PT Bayan Resources Tbk (BYAN.JK) said on Tuesday it expects its coal output to increase by 42 percent i ...
Tuesday, 13 October 09
STRAITS ASIA UPBEAT ON MEETING 2009 COAL OUTPUT
Reuters reported that, Singapore-listed coal miner Straits Asia is still optimistic about meeting its coal output target of 9 million tonnes this ye ...
Tuesday, 13 October 09
THERMAL COAL DEMAND IN CHINA DRIVES PRICE INCREASES
Metal Miner reported that, Thermal coal prices have been falling this year; contrary to many other commodities, both metals and energy that hit bott ...
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- Goldman Sachs - Singapore
- Timah Investasi Mineral - Indoneisa
- Latin American Coal - Colombia
- TNB Fuel Sdn Bhd - Malaysia
- Wood Mackenzie - Singapore
- Central Java Power - Indonesia
- Singapore Mercantile Exchange
- Energy Development Corp, Philippines
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Antam Resourcindo - Indonesia
- The Treasury - Australian Government
- IHS Mccloskey Coal Group - USA
- Sindya Power Generating Company Private Ltd
- Vijayanagar Sugar Pvt Ltd - India
- Orica Mining Services - Indonesia
- Carbofer General Trading SA - India
- SMG Consultants - Indonesia
- Independent Power Producers Association of India
- San Jose City I Power Corp, Philippines
- Georgia Ports Authority, United States
- CNBM International Corporation - China
- Cigading International Bulk Terminal - Indonesia
- Ceylon Electricity Board - Sri Lanka
- Coalindo Energy - Indonesia
- GMR Energy Limited - India
- Parry Sugars Refinery, India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Maheswari Brothers Coal Limited - India
- White Energy Company Limited
- Bukit Baiduri Energy - Indonesia
- Posco Energy - South Korea
- LBH Netherlands Bv - Netherlands
- Kohat Cement Company Ltd. - Pakistan
- Coal and Oil Company - UAE
- Petron Corporation, Philippines
- Global Business Power Corporation, Philippines
- Aditya Birla Group - India
- Gujarat Sidhee Cement - India
- PTC India Limited - India
- AsiaOL BioFuels Corp., Philippines
- Dalmia Cement Bharat India
- Heidelberg Cement - Germany
- Bharathi Cement Corporation - India
- Kepco SPC Power Corporation, Philippines
- Xindia Steels Limited - India
- Pendopo Energi Batubara - Indonesia
- CIMB Investment Bank - Malaysia
- Indika Energy - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Kalimantan Lumbung Energi - Indonesia
- Sinarmas Energy and Mining - Indonesia
- Riau Bara Harum - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Wilmar Investment Holdings
- Price Waterhouse Coopers - Russia
- Tamil Nadu electricity Board
- Savvy Resources Ltd - HongKong
- GAC Shipping (India) Pvt Ltd
- Iligan Light & Power Inc, Philippines
- Karaikal Port Pvt Ltd - India
- Indian Oil Corporation Limited
- Star Paper Mills Limited - India
- Jorong Barutama Greston.PT - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Meenaskhi Energy Private Limited - India
- Sree Jayajothi Cements Limited - India
- Gujarat Mineral Development Corp Ltd - India
- Bhoruka Overseas - Indonesia
- Vizag Seaport Private Limited - India
- Mercuria Energy - Indonesia
- Port Waratah Coal Services - Australia
- Bukit Makmur.PT - Indonesia
- Kumho Petrochemical, South Korea
- Directorate Of Revenue Intelligence - India
- Mjunction Services Limited - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Ministry of Mines - Canada
- Merrill Lynch Commodities Europe
- Bhatia International Limited - India
- Krishnapatnam Port Company Ltd. - India
- Salva Resources Pvt Ltd - India
- Uttam Galva Steels Limited - India
- Thai Mozambique Logistica
- Baramulti Group, Indonesia
- Orica Australia Pty. Ltd.
- Australian Coal Association
- Neyveli Lignite Corporation Ltd, - India
- Coastal Gujarat Power Limited - India
- Chettinad Cement Corporation Ltd - India
- Semirara Mining Corp, Philippines
- Lanco Infratech Ltd - India
- Africa Commodities Group - South Africa
- Electricity Generating Authority of Thailand
- Attock Cement Pakistan Limited
- Videocon Industries ltd - India
- Ind-Barath Power Infra Limited - India
- Siam City Cement - Thailand
- ICICI Bank Limited - India
- GN Power Mariveles Coal Plant, Philippines
- Rio Tinto Coal - Australia
- Mercator Lines Limited - India
- Gujarat Electricity Regulatory Commission - India
- Indian Energy Exchange, India
- Ambuja Cements Ltd - India
- Planning Commission, India
- Eastern Coal Council - USA
- Jindal Steel & Power Ltd - India
- The State Trading Corporation of India Ltd
- Grasim Industreis Ltd - India
- Barasentosa Lestari - Indonesia
- Australian Commodity Traders Exchange
- Straits Asia Resources Limited - Singapore
- Vedanta Resources Plc - India
- The University of Queensland
- VISA Power Limited - India
- Manunggal Multi Energi - Indonesia
- Bayan Resources Tbk. - Indonesia
- SMC Global Power, Philippines
- Agrawal Coal Company - India
- Global Green Power PLC Corporation, Philippines
- MS Steel International - UAE
- Bhushan Steel Limited - India
- Mintek Dendrill Indonesia
- Indo Tambangraya Megah - Indonesia
- Samtan Co., Ltd - South Korea
- Binh Thuan Hamico - Vietnam
- Madhucon Powers Ltd - India
- Commonwealth Bank - Australia
- Intertek Mineral Services - Indonesia
- Chamber of Mines of South Africa
- Parliament of New Zealand
- Bank of Tokyo Mitsubishi UFJ Ltd
- South Luzon Thermal Energy Corporation
- Kideco Jaya Agung - Indonesia
- Trasteel International SA, Italy
- Essar Steel Hazira Ltd - India
- PowerSource Philippines DevCo
- Sical Logistics Limited - India
- Medco Energi Mining Internasional
- New Zealand Coal & Carbon
- Banpu Public Company Limited - Thailand
- Bukit Asam (Persero) Tbk - Indonesia
- Standard Chartered Bank - UAE
- OPG Power Generation Pvt Ltd - India
- Maharashtra Electricity Regulatory Commission - India
- GVK Power & Infra Limited - India
- Eastern Energy - Thailand
- Malabar Cements Ltd - India
- Siam City Cement PLC, Thailand
- Leighton Contractors Pty Ltd - Australia
- Indogreen Group - Indonesia
- Larsen & Toubro Limited - India
- Jaiprakash Power Ventures ltd
- IEA Clean Coal Centre - UK
- Thiess Contractors Indonesia
- Bulk Trading Sa - Switzerland
- Toyota Tsusho Corporation, Japan
- Kobexindo Tractors - Indoneisa
- Kaltim Prima Coal - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Karbindo Abesyapradhi - Indoneisa
- Electricity Authority, New Zealand
- Petrochimia International Co. Ltd.- Taiwan
- Therma Luzon, Inc, Philippines
- Billiton Holdings Pty Ltd - Australia
- Miang Besar Coal Terminal - Indonesia
- Ministry of Transport, Egypt
- Altura Mining Limited, Indonesia
- Romanian Commodities Exchange
- Kartika Selabumi Mining - Indonesia
- Simpson Spence & Young - Indonesia
- Formosa Plastics Group - Taiwan
- Minerals Council of Australia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Makarim & Taira - Indonesia
- Marubeni Corporation - India
- Holcim Trading Pte Ltd - Singapore
- Interocean Group of Companies - India
- Economic Council, Georgia
- PNOC Exploration Corporation - Philippines
- Borneo Indobara - Indonesia
- Ministry of Finance - Indonesia
- Bangladesh Power Developement Board
- SN Aboitiz Power Inc, Philippines
- Energy Link Ltd, New Zealand
- Deloitte Consulting - India
- ASAPP Information Group - India
- Global Coal Blending Company Limited - Australia
- Meralco Power Generation, Philippines
- Asmin Koalindo Tuhup - Indonesia
- Indonesian Coal Mining Association
- Rashtriya Ispat Nigam Limited - India
- Globalindo Alam Lestari - Indonesia
- TeaM Sual Corporation - Philippines
- Kapuas Tunggal Persada - Indonesia
- Central Electricity Authority - India
- Renaissance Capital - South Africa
- Alfred C Toepfer International GmbH - Germany
- Power Finance Corporation Ltd., India
- International Coal Ventures Pvt Ltd - India
- Metalloyd Limited - United Kingdom
- McConnell Dowell - Australia
- London Commodity Brokers - England
- Directorate General of MIneral and Coal - Indonesia
- Tata Chemicals Ltd - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Edison Trading Spa - Italy
- Cement Manufacturers Association - India
- Anglo American - United Kingdom
- Pipit Mutiara Jaya. PT, Indonesia
- Oldendorff Carriers - Singapore
- European Bulk Services B.V. - Netherlands
- India Bulls Power Limited - India
- Sarangani Energy Corporation, Philippines
- Sojitz Corporation - Japan
- Sakthi Sugars Limited - India
- Aboitiz Power Corporation - Philippines
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