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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 $5.5 billion.
Pardomuan said he thought commodity prices, particularly energy prices, would remain cheap prior to a full global economic recovery.
He added that information available on the Bumi-CIC deal was incomplete, and he expected Bumi to make further public disclosures about it soon.
In June, Bumi won shareholder approval to pledge the assets of two coal miners, PT Kaltim Prima Coal and PT Arutmin Indonesia, and one noncoal miner, Australian-based Herald Resources, for more loans, the amount of which the company did not disclose at the time.
Bumi’s shares have more than tripled in price this year, making it the best-performing stock in the 19-stock MSCI Indonesia Index.
Source: The Jakarta Globe
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Saturday, 10 October 09
PT BUMI RESOURCES TO EXPECT 2010 ELECTRIC AND COAL PRICE UP TO US$ 100/T
Indonesia coal producer, PT Bumi Resources recently stated that the revival of the global economy pushes up the demand from power plants and steel m ...
Friday, 09 October 09
INDIKA IN TALKS TO SELL 4M TONS OF COAL, EYEING BP ASSETS
The Jakarta Post reported that, Energy company PT Indika Energy is in talks with Indian buyers to sell 4 million tons of coal next year, one of its ...
Friday, 09 October 09
BULK-SHIPPING LINES MUST CANCEL 50% OF NEW ORDERS, PLATOU SAYS
Bloomberg reported that, Bulk-shipping lines need to cancel half of the new vessels they have on order to ease a capacity glut and revive freight ra ...
Friday, 09 October 09
THE BALTIC DRY INDEX WOKE UP: DRY BULK MARKET ON THE RISE
Hellenic Shipping News reported that, In what could prove the beginning of a new and sustainable rally for the dry bulk market, the BDI (Baltic Dry ...
Friday, 09 October 09
STRAITS ASIA INDONESIAN MINE COAL LOADER COLLAPSES
* New coal loading facility collapsed due to heavy rain
* Older coal loading facility seem unaffected so far
* UBS may cut valuation if disruption ...
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- Formosa Plastics Group - Taiwan
- Meenaskhi Energy Private Limited - India
- Energy Link Ltd, New Zealand
- GMR Energy Limited - India
- Essar Steel Hazira Ltd - India
- Goldman Sachs - Singapore
- Indika Energy - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Bayan Resources Tbk. - Indonesia
- TeaM Sual Corporation - Philippines
- Anglo American - United Kingdom
- Indian Energy Exchange, India
- Uttam Galva Steels Limited - India
- White Energy Company Limited
- CIMB Investment Bank - Malaysia
- Kumho Petrochemical, South Korea
- Vedanta Resources Plc - India
- Sakthi Sugars Limited - India
- Vizag Seaport Private Limited - India
- GN Power Mariveles Coal Plant, Philippines
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Sindya Power Generating Company Private Ltd
- Global Green Power PLC Corporation, Philippines
- Global Business Power Corporation, Philippines
- AsiaOL BioFuels Corp., Philippines
- London Commodity Brokers - England
- Antam Resourcindo - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Sinarmas Energy and Mining - Indonesia
- SMC Global Power, Philippines
- Central Java Power - Indonesia
- Videocon Industries ltd - India
- Electricity Generating Authority of Thailand
- Sical Logistics Limited - India
- Gujarat Sidhee Cement - India
- IEA Clean Coal Centre - UK
- Port Waratah Coal Services - Australia
- Interocean Group of Companies - India
- Posco Energy - South Korea
- Star Paper Mills Limited - India
- LBH Netherlands Bv - Netherlands
- Mercator Lines Limited - India
- Indogreen Group - Indonesia
- Siam City Cement PLC, Thailand
- Marubeni Corporation - India
- Coastal Gujarat Power Limited - India
- Ministry of Finance - Indonesia
- Renaissance Capital - South Africa
- Baramulti Group, Indonesia
- India Bulls Power Limited - India
- Banpu Public Company Limited - Thailand
- Australian Coal Association
- CNBM International Corporation - China
- Kapuas Tunggal Persada - Indonesia
- Minerals Council of Australia
- Economic Council, Georgia
- Timah Investasi Mineral - Indoneisa
- Dalmia Cement Bharat India
- PNOC Exploration Corporation - Philippines
- Romanian Commodities Exchange
- PowerSource Philippines DevCo
- Commonwealth Bank - Australia
- Wilmar Investment Holdings
- Altura Mining Limited, Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Pendopo Energi Batubara - Indonesia
- Petron Corporation, Philippines
- Planning Commission, India
- Metalloyd Limited - United Kingdom
- Chettinad Cement Corporation Ltd - India
- Miang Besar Coal Terminal - Indonesia
- Kideco Jaya Agung - Indonesia
- Kepco SPC Power Corporation, Philippines
- GAC Shipping (India) Pvt Ltd
- PTC India Limited - India
- Jorong Barutama Greston.PT - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- SN Aboitiz Power Inc, Philippines
- Intertek Mineral Services - Indonesia
- Standard Chartered Bank - UAE
- McConnell Dowell - Australia
- Rio Tinto Coal - Australia
- Makarim & Taira - Indonesia
- Mjunction Services Limited - India
- Medco Energi Mining Internasional
- Siam City Cement - Thailand
- Attock Cement Pakistan Limited
- Mintek Dendrill Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Sree Jayajothi Cements Limited - India
- Bukit Asam (Persero) Tbk - Indonesia
- Ambuja Cements Ltd - India
- Cigading International Bulk Terminal - Indonesia
- Lanco Infratech Ltd - India
- Power Finance Corporation Ltd., India
- Directorate Of Revenue Intelligence - India
- ASAPP Information Group - India
- Heidelberg Cement - Germany
- Alfred C Toepfer International GmbH - Germany
- Cement Manufacturers Association - India
- Billiton Holdings Pty Ltd - Australia
- Chamber of Mines of South Africa
- Gujarat Electricity Regulatory Commission - India
- Maheswari Brothers Coal Limited - India
- SMG Consultants - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Petrochimia International Co. Ltd.- Taiwan
- Therma Luzon, Inc, Philippines
- Orica Mining Services - Indonesia
- Ministry of Mines - Canada
- Bahari Cakrawala Sebuku - Indonesia
- Larsen & Toubro Limited - India
- Meralco Power Generation, Philippines
- Electricity Authority, New Zealand
- VISA Power Limited - India
- Vijayanagar Sugar Pvt Ltd - India
- PetroVietnam Power Coal Import and Supply Company
- ICICI Bank Limited - India
- Malabar Cements Ltd - India
- Tamil Nadu electricity Board
- Indian Oil Corporation Limited
- Indo Tambangraya Megah - Indonesia
- Karaikal Port Pvt Ltd - India
- Bhatia International Limited - India
- Latin American Coal - Colombia
- Ministry of Transport, Egypt
- Leighton Contractors Pty Ltd - Australia
- Savvy Resources Ltd - HongKong
- Sojitz Corporation - Japan
- MS Steel International - UAE
- Xindia Steels Limited - India
- Eastern Energy - Thailand
- Jindal Steel & Power Ltd - India
- Simpson Spence & Young - Indonesia
- Deloitte Consulting - India
- Africa Commodities Group - South Africa
- Bhushan Steel Limited - India
- Edison Trading Spa - Italy
- Central Electricity Authority - India
- OPG Power Generation Pvt Ltd - India
- Iligan Light & Power Inc, Philippines
- Riau Bara Harum - Indonesia
- Thiess Contractors Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Kohat Cement Company Ltd. - Pakistan
- Orica Australia Pty. Ltd.
- Toyota Tsusho Corporation, Japan
- Kobexindo Tractors - Indoneisa
- Bhoruka Overseas - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Bulk Trading Sa - Switzerland
- New Zealand Coal & Carbon
- Rashtriya Ispat Nigam Limited - India
- Sarangani Energy Corporation, Philippines
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Borneo Indobara - Indonesia
- Singapore Mercantile Exchange
- Coalindo Energy - Indonesia
- Bharathi Cement Corporation - India
- Ceylon Electricity Board - Sri Lanka
- Thai Mozambique Logistica
- Jaiprakash Power Ventures ltd
- The University of Queensland
- Global Coal Blending Company Limited - Australia
- Tata Chemicals Ltd - India
- Aditya Birla Group - India
- Maharashtra Electricity Regulatory Commission - India
- Ind-Barath Power Infra Limited - India
- Bangladesh Power Developement Board
- Australian Commodity Traders Exchange
- Parry Sugars Refinery, India
- Eastern Coal Council - USA
- Manunggal Multi Energi - Indonesia
- Salva Resources Pvt Ltd - India
- Barasentosa Lestari - Indonesia
- Bukit Baiduri Energy - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- IHS Mccloskey Coal Group - USA
- Merrill Lynch Commodities Europe
- GVK Power & Infra Limited - India
- Bukit Makmur.PT - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Independent Power Producers Association of India
- Oldendorff Carriers - Singapore
- Trasteel International SA, Italy
- Binh Thuan Hamico - Vietnam
- Agrawal Coal Company - India
- Pipit Mutiara Jaya. PT, Indonesia
- Madhucon Powers Ltd - India
- Wood Mackenzie - Singapore
- Straits Asia Resources Limited - Singapore
- Kartika Selabumi Mining - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- San Jose City I Power Corp, Philippines
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Mercuria Energy - Indonesia
- Globalindo Alam Lestari - Indonesia
- Grasim Industreis Ltd - India
- Karbindo Abesyapradhi - Indoneisa
- Indonesian Coal Mining Association
- Semirara Mining Corp, Philippines
- South Luzon Thermal Energy Corporation
- Energy Development Corp, Philippines
- Kaltim Prima Coal - Indonesia
- Carbofer General Trading SA - India
- Georgia Ports Authority, United States
- Parliament of New Zealand
- The Treasury - Australian Government
- Krishnapatnam Port Company Ltd. - India
- The State Trading Corporation of India Ltd
- Price Waterhouse Coopers - Russia
- Samtan Co., Ltd - South Korea
- European Bulk Services B.V. - Netherlands
- Directorate General of MIneral and Coal - Indonesia
- Coal and Oil Company - UAE
- International Coal Ventures Pvt Ltd - India
- Aboitiz Power Corporation - Philippines
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