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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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Thursday, 08 October 09
COAL INDIA SAYS IMPORTS COULD JUMP 10 TIMES IN 3 YRS
Reuters reported that, Coal imports by state explorer Coal India Ltd could jump 10 times to 40-45 million tonnes in three years to meet a sharp rise ...
Thursday, 08 October 09
MINING TO ATTRACT $6B: BKPM
The Jakarta Post reported that, Indonesia’s mining sector could expect investment of up to US$6 billion in the 2010-2012 period, in part becau ...
Thursday, 08 October 09
INDIA DEMAND TO HELP DIRE COAL OUTLOOK - MACQUARIE
Reuters reported that, Macquarie Securities said on Wednesday its bearish short-term outlook on thermal coal may begin improving in a year's time o ...
Thursday, 08 October 09
ESSAR UNIT WINS INR 479 CR (US$ 103,272,401) ORISSA PROJECT
The firm will develop and operate the terminal at Paradip port; the contract will stretch up to 30 years
Live Mint reported that, Essar Shipping ...
Wednesday, 07 October 09
ESSAR, JINDAL IN TAKEOVER TUSSLE FOR AUSTRALIAN COAL MINER
Reuters reported that, Privately owned Essar Group has launched a surprise A$144.2 million ($128.1 million) bid for Australian coal minnow Rocklands ...
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- Global Business Power Corporation, Philippines
- International Coal Ventures Pvt Ltd - India
- LBH Netherlands Bv - Netherlands
- Orica Mining Services - Indonesia
- PTC India Limited - India
- Economic Council, Georgia
- Kaltim Prima Coal - Indonesia
- Wood Mackenzie - Singapore
- Maharashtra Electricity Regulatory Commission - India
- Metalloyd Limited - United Kingdom
- VISA Power Limited - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Trasteel International SA, Italy
- Siam City Cement - Thailand
- Iligan Light & Power Inc, Philippines
- GMR Energy Limited - India
- GN Power Mariveles Coal Plant, Philippines
- Globalindo Alam Lestari - Indonesia
- Vedanta Resources Plc - India
- Indian Energy Exchange, India
- Medco Energi Mining Internasional
- Orica Australia Pty. Ltd.
- London Commodity Brokers - England
- Ministry of Finance - Indonesia
- Sindya Power Generating Company Private Ltd
- Semirara Mining Corp, Philippines
- Coalindo Energy - Indonesia
- SMG Consultants - Indonesia
- Kartika Selabumi Mining - Indonesia
- Indonesian Coal Mining Association
- IHS Mccloskey Coal Group - USA
- Petron Corporation, Philippines
- Jaiprakash Power Ventures ltd
- PetroVietnam Power Coal Import and Supply Company
- Bank of Tokyo Mitsubishi UFJ Ltd
- Eastern Coal Council - USA
- Energy Link Ltd, New Zealand
- Bukit Baiduri Energy - Indonesia
- Siam City Cement PLC, Thailand
- Therma Luzon, Inc, Philippines
- Port Waratah Coal Services - Australia
- San Jose City I Power Corp, Philippines
- Riau Bara Harum - Indonesia
- Bhatia International Limited - India
- Bangladesh Power Developement Board
- PowerSource Philippines DevCo
- The State Trading Corporation of India Ltd
- Kobexindo Tractors - Indoneisa
- Leighton Contractors Pty Ltd - Australia
- Chamber of Mines of South Africa
- Commonwealth Bank - Australia
- Bhushan Steel Limited - India
- Madhucon Powers Ltd - India
- MS Steel International - UAE
- TNB Fuel Sdn Bhd - Malaysia
- Meenaskhi Energy Private Limited - India
- Videocon Industries ltd - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Bulk Trading Sa - Switzerland
- Standard Chartered Bank - UAE
- Energy Development Corp, Philippines
- Edison Trading Spa - Italy
- Anglo American - United Kingdom
- SMC Global Power, Philippines
- Manunggal Multi Energi - Indonesia
- Grasim Industreis Ltd - India
- Star Paper Mills Limited - India
- Xindia Steels Limited - India
- CNBM International Corporation - China
- Petrochimia International Co. Ltd.- Taiwan
- Samtan Co., Ltd - South Korea
- India Bulls Power Limited - India
- Goldman Sachs - Singapore
- Indogreen Group - Indonesia
- Sojitz Corporation - Japan
- Banpu Public Company Limited - Thailand
- Coal and Oil Company - UAE
- Indika Energy - Indonesia
- Ambuja Cements Ltd - India
- Directorate Of Revenue Intelligence - India
- Planning Commission, India
- Directorate General of MIneral and Coal - Indonesia
- Salva Resources Pvt Ltd - India
- Cement Manufacturers Association - India
- Bukit Makmur.PT - Indonesia
- Miang Besar Coal Terminal - Indonesia
- Global Green Power PLC Corporation, Philippines
- Interocean Group of Companies - India
- Neyveli Lignite Corporation Ltd, - India
- Renaissance Capital - South Africa
- Marubeni Corporation - India
- Vijayanagar Sugar Pvt Ltd - India
- Vizag Seaport Private Limited - India
- Bahari Cakrawala Sebuku - Indonesia
- Timah Investasi Mineral - Indoneisa
- Sree Jayajothi Cements Limited - India
- Agrawal Coal Company - India
- Georgia Ports Authority, United States
- Cigading International Bulk Terminal - Indonesia
- Semirara Mining and Power Corporation, Philippines
- McConnell Dowell - Australia
- Kepco SPC Power Corporation, Philippines
- Deloitte Consulting - India
- South Luzon Thermal Energy Corporation
- Posco Energy - South Korea
- Attock Cement Pakistan Limited
- Jindal Steel & Power Ltd - India
- Kalimantan Lumbung Energi - Indonesia
- Aditya Birla Group - India
- Formosa Plastics Group - Taiwan
- Central Electricity Authority - India
- Barasentosa Lestari - Indonesia
- ASAPP Information Group - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Tamil Nadu electricity Board
- Gujarat Mineral Development Corp Ltd - India
- Karbindo Abesyapradhi - Indoneisa
- SN Aboitiz Power Inc, Philippines
- Romanian Commodities Exchange
- Intertek Mineral Services - Indonesia
- Singapore Mercantile Exchange
- Eastern Energy - Thailand
- Ind-Barath Power Infra Limited - India
- Indo Tambangraya Megah - Indonesia
- Bhoruka Overseas - Indonesia
- Bayan Resources Tbk. - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Meralco Power Generation, Philippines
- Australian Commodity Traders Exchange
- Kapuas Tunggal Persada - Indonesia
- OPG Power Generation Pvt Ltd - India
- Kohat Cement Company Ltd. - Pakistan
- Ministry of Mines - Canada
- Oldendorff Carriers - Singapore
- Africa Commodities Group - South Africa
- IEA Clean Coal Centre - UK
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Parliament of New Zealand
- Thiess Contractors Indonesia
- Borneo Indobara - Indonesia
- Indian Oil Corporation Limited
- Mintek Dendrill Indonesia
- Gujarat Electricity Regulatory Commission - India
- Binh Thuan Hamico - Vietnam
- Baramulti Group, Indonesia
- Wilmar Investment Holdings
- Dalmia Cement Bharat India
- Savvy Resources Ltd - HongKong
- Sinarmas Energy and Mining - Indonesia
- CIMB Investment Bank - Malaysia
- PNOC Exploration Corporation - Philippines
- Electricity Generating Authority of Thailand
- Ceylon Electricity Board - Sri Lanka
- White Energy Company Limited
- Altura Mining Limited, Indonesia
- Power Finance Corporation Ltd., India
- Independent Power Producers Association of India
- Latin American Coal - Colombia
- Central Java Power - Indonesia
- Straits Asia Resources Limited - Singapore
- Uttam Galva Steels Limited - India
- Ministry of Transport, Egypt
- Pendopo Energi Batubara - Indonesia
- The Treasury - Australian Government
- Mjunction Services Limited - India
- GAC Shipping (India) Pvt Ltd
- AsiaOL BioFuels Corp., Philippines
- Electricity Authority, New Zealand
- Rio Tinto Coal - Australia
- Merrill Lynch Commodities Europe
- Maheswari Brothers Coal Limited - India
- Carbofer General Trading SA - India
- Sakthi Sugars Limited - India
- Gujarat Sidhee Cement - India
- Essar Steel Hazira Ltd - India
- Alfred C Toepfer International GmbH - Germany
- Simpson Spence & Young - Indonesia
- Bharathi Cement Corporation - India
- TeaM Sual Corporation - Philippines
- Mercator Lines Limited - India
- Toyota Tsusho Corporation, Japan
- The University of Queensland
- Krishnapatnam Port Company Ltd. - India
- Thai Mozambique Logistica
- Chettinad Cement Corporation Ltd - India
- Mercuria Energy - Indonesia
- Karaikal Port Pvt Ltd - India
- Global Coal Blending Company Limited - Australia
- GVK Power & Infra Limited - India
- Makarim & Taira - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Lanco Infratech Ltd - India
- Minerals Council of Australia
- Tata Chemicals Ltd - India
- Bukit Asam (Persero) Tbk - Indonesia
- Billiton Holdings Pty Ltd - Australia
- ICICI Bank Limited - India
- Parry Sugars Refinery, India
- European Bulk Services B.V. - Netherlands
- Antam Resourcindo - Indonesia
- New Zealand Coal & Carbon
- Price Waterhouse Coopers - Russia
- Holcim Trading Pte Ltd - Singapore
- Malabar Cements Ltd - India
- Larsen & Toubro Limited - India
- Sarangani Energy Corporation, Philippines
- Kumho Petrochemical, South Korea
- Aboitiz Power Corporation - Philippines
- Offshore Bulk Terminal Pte Ltd, Singapore
- Rashtriya Ispat Nigam Limited - India
- Heidelberg Cement - Germany
- Asmin Koalindo Tuhup - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Coastal Gujarat Power Limited - India
- Australian Coal Association
- Kideco Jaya Agung - Indonesia
- Sical Logistics Limited - India
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