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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, 07 October 09
COAL INDIA LOOKS AT LONG-TERM PRICE CONTRACTS
Economic Times reported that, Coal India is looking at long-term price contracts, of at least three-four year periods, with foreign entities, 54 of ...
Wednesday, 07 October 09
COAL INDIA, SHIPPING CORP MAY FORM VENTURE TO IMPORT COAL
The venture may be on the lines of the firm that CIL plans with SAIL for coal imports in which both to hold 25%
Live Mint reported that, State-ru ...
Tuesday, 06 October 09
ASIA COAL-PRICE REBOUND TOWARDS $71 ON TENDER ACTIVITY
Reuters reported that, Prices of power-station coal in Australia, a benchmark for Asia, rose 4 percent in the latest week to near $71 a tonne, bolst ...
Tuesday, 06 October 09
BHARATHI CEMENT TO ADD 2.5 MT CAPACITY BY 2010
Business-Standard reported that, Bharathi Cement Corporation (BCC) commenced its commercial operations from its Nallalingayapalli manufacturing plan ...
Tuesday, 06 October 09
MOZAMBIQUE TO BUILD COAL RAILWAY
BBC reported that, Mozambique's government has announced that it has secured $500m (£313m) to build a new railway line. The transport ministe ...
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- Directorate General of MIneral and Coal - Indonesia
- Orica Australia Pty. Ltd.
- Sakthi Sugars Limited - India
- Edison Trading Spa - Italy
- Gujarat Mineral Development Corp Ltd - India
- The Treasury - Australian Government
- Cigading International Bulk Terminal - Indonesia
- Anglo American - United Kingdom
- Maheswari Brothers Coal Limited - India
- Renaissance Capital - South Africa
- Sojitz Corporation - Japan
- Alfred C Toepfer International GmbH - Germany
- McConnell Dowell - Australia
- Thiess Contractors Indonesia
- Aboitiz Power Corporation - Philippines
- The State Trading Corporation of India Ltd
- Global Business Power Corporation, Philippines
- Larsen & Toubro Limited - India
- PTC India Limited - India
- Wood Mackenzie - Singapore
- Antam Resourcindo - Indonesia
- Siam City Cement - Thailand
- Binh Thuan Hamico - Vietnam
- Vijayanagar Sugar Pvt Ltd - India
- Ministry of Finance - Indonesia
- Energy Link Ltd, New Zealand
- TeaM Sual Corporation - Philippines
- Independent Power Producers Association of India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Bhushan Steel Limited - India
- Timah Investasi Mineral - Indoneisa
- Kobexindo Tractors - Indoneisa
- Straits Asia Resources Limited - Singapore
- The University of Queensland
- Sarangani Energy Corporation, Philippines
- Vedanta Resources Plc - India
- Standard Chartered Bank - UAE
- Samtan Co., Ltd - South Korea
- Petron Corporation, Philippines
- Australian Commodity Traders Exchange
- Baramulti Group, Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Grasim Industreis Ltd - India
- GAC Shipping (India) Pvt Ltd
- London Commodity Brokers - England
- Minerals Council of Australia
- Eastern Coal Council - USA
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Medco Energi Mining Internasional
- Australian Coal Association
- Holcim Trading Pte Ltd - Singapore
- Xindia Steels Limited - India
- Bayan Resources Tbk. - Indonesia
- Kideco Jaya Agung - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- CIMB Investment Bank - Malaysia
- LBH Netherlands Bv - Netherlands
- Marubeni Corporation - India
- Metalloyd Limited - United Kingdom
- Bharathi Cement Corporation - India
- Ceylon Electricity Board - Sri Lanka
- Rio Tinto Coal - Australia
- PNOC Exploration Corporation - Philippines
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Port Waratah Coal Services - Australia
- Riau Bara Harum - Indonesia
- Mercuria Energy - Indonesia
- Africa Commodities Group - South Africa
- Eastern Energy - Thailand
- Orica Mining Services - Indonesia
- Therma Luzon, Inc, Philippines
- Bulk Trading Sa - Switzerland
- OPG Power Generation Pvt Ltd - India
- Singapore Mercantile Exchange
- Central Java Power - Indonesia
- Semirara Mining Corp, Philippines
- Kumho Petrochemical, South Korea
- TNB Fuel Sdn Bhd - Malaysia
- Global Coal Blending Company Limited - Australia
- Heidelberg Cement - Germany
- International Coal Ventures Pvt Ltd - India
- IEA Clean Coal Centre - UK
- Ambuja Cements Ltd - India
- Lanco Infratech Ltd - India
- Attock Cement Pakistan Limited
- Offshore Bulk Terminal Pte Ltd, Singapore
- Maharashtra Electricity Regulatory Commission - India
- Mjunction Services Limited - India
- Jindal Steel & Power Ltd - India
- SN Aboitiz Power Inc, Philippines
- Economic Council, Georgia
- Bangladesh Power Developement Board
- Salva Resources Pvt Ltd - India
- GMR Energy Limited - India
- Trasteel International SA, Italy
- Malabar Cements Ltd - India
- Wilmar Investment Holdings
- Barasentosa Lestari - Indonesia
- Siam City Cement PLC, Thailand
- Latin American Coal - Colombia
- Indonesian Coal Mining Association
- Ministry of Mines - Canada
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Jaiprakash Power Ventures ltd
- Coalindo Energy - Indonesia
- Indogreen Group - Indonesia
- Deloitte Consulting - India
- Cement Manufacturers Association - India
- Sinarmas Energy and Mining - Indonesia
- Meenaskhi Energy Private Limited - India
- Formosa Plastics Group - Taiwan
- Star Paper Mills Limited - India
- VISA Power Limited - India
- Ministry of Transport, Egypt
- Borneo Indobara - Indonesia
- Simpson Spence & Young - Indonesia
- Karaikal Port Pvt Ltd - India
- Madhucon Powers Ltd - India
- Makarim & Taira - Indonesia
- Electricity Authority, New Zealand
- Indo Tambangraya Megah - Indonesia
- New Zealand Coal & Carbon
- South Luzon Thermal Energy Corporation
- Posco Energy - South Korea
- Energy Development Corp, Philippines
- Interocean Group of Companies - India
- Power Finance Corporation Ltd., India
- Aditya Birla Group - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Pendopo Energi Batubara - Indonesia
- Uttam Galva Steels Limited - India
- Merrill Lynch Commodities Europe
- Bukit Makmur.PT - Indonesia
- Bukit Baiduri Energy - Indonesia
- Dalmia Cement Bharat India
- Gujarat Electricity Regulatory Commission - India
- ASAPP Information Group - India
- Kaltim Prima Coal - Indonesia
- Price Waterhouse Coopers - Russia
- Indian Oil Corporation Limited
- Thai Mozambique Logistica
- Parry Sugars Refinery, India
- Asmin Koalindo Tuhup - Indonesia
- Vizag Seaport Private Limited - India
- Kartika Selabumi Mining - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Tamil Nadu electricity Board
- Altura Mining Limited, Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- ICICI Bank Limited - India
- Gujarat Sidhee Cement - India
- Chettinad Cement Corporation Ltd - India
- Essar Steel Hazira Ltd - India
- White Energy Company Limited
- Kapuas Tunggal Persada - Indonesia
- Tata Chemicals Ltd - India
- Chamber of Mines of South Africa
- Mintek Dendrill Indonesia
- Banpu Public Company Limited - Thailand
- Parliament of New Zealand
- Neyveli Lignite Corporation Ltd, - India
- Krishnapatnam Port Company Ltd. - India
- Intertek Mineral Services - Indonesia
- Kepco SPC Power Corporation, Philippines
- Coal and Oil Company - UAE
- Bank of Tokyo Mitsubishi UFJ Ltd
- GVK Power & Infra Limited - India
- SMG Consultants - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- PowerSource Philippines DevCo
- Globalindo Alam Lestari - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Kohat Cement Company Ltd. - Pakistan
- Electricity Generating Authority of Thailand
- Sree Jayajothi Cements Limited - India
- Central Electricity Authority - India
- Georgia Ports Authority, United States
- Billiton Holdings Pty Ltd - Australia
- Indian Energy Exchange, India
- Coastal Gujarat Power Limited - India
- CNBM International Corporation - China
- Sindya Power Generating Company Private Ltd
- European Bulk Services B.V. - Netherlands
- Bukit Asam (Persero) Tbk - Indonesia
- Meralco Power Generation, Philippines
- Agrawal Coal Company - India
- Oldendorff Carriers - Singapore
- Rashtriya Ispat Nigam Limited - India
- Iligan Light & Power Inc, Philippines
- Planning Commission, India
- IHS Mccloskey Coal Group - USA
- Romanian Commodities Exchange
- Directorate Of Revenue Intelligence - India
- SMC Global Power, Philippines
- Manunggal Multi Energi - Indonesia
- Indika Energy - Indonesia
- Carbofer General Trading SA - India
- San Jose City I Power Corp, Philippines
- Toyota Tsusho Corporation, Japan
- Miang Besar Coal Terminal - Indonesia
- Ind-Barath Power Infra Limited - India
- Goldman Sachs - Singapore
- Commonwealth Bank - Australia
- Global Green Power PLC Corporation, Philippines
- MS Steel International - UAE
- Savvy Resources Ltd - HongKong
- Sical Logistics Limited - India
- Bhatia International Limited - India
- Semirara Mining and Power Corporation, Philippines
- India Bulls Power Limited - India
- Leighton Contractors Pty Ltd - Australia
- Videocon Industries ltd - India
- Mercator Lines Limited - India
- Bhoruka Overseas - Indonesia
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