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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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Tuesday, 06 October 09
COAL INDIA AIMS TO BUY MINE ABROAD BY MARCH
*Coal India to issue its first coal import tender by Nov
*ArcelorMittal, 9 others in race to develop abandoned mines
*52 firms keen to partner coa ...
Monday, 05 October 09
SOUTH AFRICAN COAL RISES ON INDIAN BUYING, DOMESTIC DEMAND
Bloomberg reported that, Prices for coal shipped from South Africa’s Richards Bay, site of the world’s largest export terminal for the f ...
Monday, 05 October 09
BANPU EYES INCREASE IN COAL OUTPUT
The Nation reported that, Banpu plans to boost its coal output to 23 million tonnes next year once production begins at the East Block of its Indomi ...
Monday, 05 October 09
COAL TRADING C&O TO INVEST $100 M NEXT YEAR
The Jakarta Post reported that, Coal and Oil (C&0) Group of India plans to invest up to US$100 million in Indonesia next year to acquire coal mi ...
Sunday, 04 October 09
INDONESIAN COAL EXCHANGE FOR PRICE BENCHMARKING IN OFFING
Reuters cited Mr Bob Kamandanu chairman of the Indonesian Coal Producers Association as saying that Indonesia plans to set up a coal exchange to cre ...
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- Minerals Council of Australia
- Interocean Group of Companies - India
- Vijayanagar Sugar Pvt Ltd - India
- Bhoruka Overseas - Indonesia
- Siam City Cement PLC, Thailand
- Indian Oil Corporation Limited
- Formosa Plastics Group - Taiwan
- Sojitz Corporation - Japan
- Pendopo Energi Batubara - Indonesia
- Gujarat Sidhee Cement - India
- Bangladesh Power Developement Board
- Binh Thuan Hamico - Vietnam
- Jorong Barutama Greston.PT - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- GMR Energy Limited - India
- Malabar Cements Ltd - India
- GVK Power & Infra Limited - India
- Baramulti Group, Indonesia
- Attock Cement Pakistan Limited
- Ind-Barath Power Infra Limited - India
- South Luzon Thermal Energy Corporation
- IEA Clean Coal Centre - UK
- Electricity Authority, New Zealand
- Maheswari Brothers Coal Limited - India
- Gujarat Mineral Development Corp Ltd - India
- Toyota Tsusho Corporation, Japan
- Parliament of New Zealand
- LBH Netherlands Bv - Netherlands
- Sical Logistics Limited - India
- Bhushan Steel Limited - India
- PTC India Limited - India
- Aditya Birla Group - India
- Power Finance Corporation Ltd., India
- Mjunction Services Limited - India
- Xindia Steels Limited - India
- Trasteel International SA, Italy
- Rio Tinto Coal - Australia
- Bayan Resources Tbk. - Indonesia
- Economic Council, Georgia
- Mintek Dendrill Indonesia
- Karaikal Port Pvt Ltd - India
- London Commodity Brokers - England
- Carbofer General Trading SA - India
- Deloitte Consulting - India
- Aboitiz Power Corporation - Philippines
- Wood Mackenzie - Singapore
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Borneo Indobara - Indonesia
- The Treasury - Australian Government
- Africa Commodities Group - South Africa
- Global Coal Blending Company Limited - Australia
- Indian Energy Exchange, India
- Posco Energy - South Korea
- Videocon Industries ltd - India
- Kepco SPC Power Corporation, Philippines
- Sindya Power Generating Company Private Ltd
- Eastern Coal Council - USA
- PNOC Exploration Corporation - Philippines
- Thiess Contractors Indonesia
- Indonesian Coal Mining Association
- Manunggal Multi Energi - Indonesia
- Jindal Steel & Power Ltd - India
- CIMB Investment Bank - Malaysia
- Ministry of Finance - Indonesia
- India Bulls Power Limited - India
- Semirara Mining and Power Corporation, Philippines
- IHS Mccloskey Coal Group - USA
- Jaiprakash Power Ventures ltd
- San Jose City I Power Corp, Philippines
- Bulk Trading Sa - Switzerland
- Orica Australia Pty. Ltd.
- Indogreen Group - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Chettinad Cement Corporation Ltd - India
- Goldman Sachs - Singapore
- Larsen & Toubro Limited - India
- TeaM Sual Corporation - Philippines
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Mercuria Energy - Indonesia
- Coastal Gujarat Power Limited - India
- Kapuas Tunggal Persada - Indonesia
- Intertek Mineral Services - Indonesia
- Semirara Mining Corp, Philippines
- Altura Mining Limited, Indonesia
- Oldendorff Carriers - Singapore
- Sree Jayajothi Cements Limited - India
- Meenaskhi Energy Private Limited - India
- Banpu Public Company Limited - Thailand
- SMG Consultants - Indonesia
- Central Java Power - Indonesia
- Tamil Nadu electricity Board
- Marubeni Corporation - India
- Latin American Coal - Colombia
- Mercator Lines Limited - India
- Antam Resourcindo - Indonesia
- Commonwealth Bank - Australia
- Georgia Ports Authority, United States
- Cigading International Bulk Terminal - Indonesia
- Meralco Power Generation, Philippines
- Timah Investasi Mineral - Indoneisa
- White Energy Company Limited
- Indo Tambangraya Megah - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Kumho Petrochemical, South Korea
- Leighton Contractors Pty Ltd - Australia
- Bukit Baiduri Energy - Indonesia
- Globalindo Alam Lestari - Indonesia
- Directorate Of Revenue Intelligence - India
- Ceylon Electricity Board - Sri Lanka
- PowerSource Philippines DevCo
- Romanian Commodities Exchange
- Metalloyd Limited - United Kingdom
- Kohat Cement Company Ltd. - Pakistan
- GN Power Mariveles Coal Plant, Philippines
- Global Green Power PLC Corporation, Philippines
- Petrochimia International Co. Ltd.- Taiwan
- Port Waratah Coal Services - Australia
- Wilmar Investment Holdings
- Asmin Koalindo Tuhup - Indonesia
- Coalindo Energy - Indonesia
- Salva Resources Pvt Ltd - India
- TNB Fuel Sdn Bhd - Malaysia
- Essar Steel Hazira Ltd - India
- New Zealand Coal & Carbon
- Australian Commodity Traders Exchange
- Merrill Lynch Commodities Europe
- Lanco Infratech Ltd - India
- Sakthi Sugars Limited - India
- ASAPP Information Group - India
- Star Paper Mills Limited - India
- Electricity Generating Authority of Thailand
- Kartika Selabumi Mining - Indonesia
- Siam City Cement - Thailand
- Madhucon Powers Ltd - India
- Kideco Jaya Agung - Indonesia
- Savvy Resources Ltd - HongKong
- Sarangani Energy Corporation, Philippines
- Petron Corporation, Philippines
- Global Business Power Corporation, Philippines
- Medco Energi Mining Internasional
- Cement Manufacturers Association - India
- Energy Link Ltd, New Zealand
- Indika Energy - Indonesia
- The State Trading Corporation of India Ltd
- Iligan Light & Power Inc, Philippines
- Tata Chemicals Ltd - India
- Kobexindo Tractors - Indoneisa
- Thai Mozambique Logistica
- Vizag Seaport Private Limited - India
- McConnell Dowell - Australia
- VISA Power Limited - India
- Barasentosa Lestari - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Ministry of Mines - Canada
- Samtan Co., Ltd - South Korea
- Ambuja Cements Ltd - India
- Standard Chartered Bank - UAE
- Energy Development Corp, Philippines
- Australian Coal Association
- Alfred C Toepfer International GmbH - Germany
- Eastern Energy - Thailand
- Uttam Galva Steels Limited - India
- PetroVietnam Power Coal Import and Supply Company
- Riau Bara Harum - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Simpson Spence & Young - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Coal and Oil Company - UAE
- The University of Queensland
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Parry Sugars Refinery, India
- Planning Commission, India
- Dalmia Cement Bharat India
- Singapore Mercantile Exchange
- Holcim Trading Pte Ltd - Singapore
- ICICI Bank Limited - India
- MS Steel International - UAE
- Bukit Makmur.PT - Indonesia
- Orica Mining Services - Indonesia
- Ministry of Transport, Egypt
- Anglo American - United Kingdom
- Billiton Holdings Pty Ltd - Australia
- CNBM International Corporation - China
- Bahari Cakrawala Sebuku - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Edison Trading Spa - Italy
- Grasim Industreis Ltd - India
- Krishnapatnam Port Company Ltd. - India
- Renaissance Capital - South Africa
- Makarim & Taira - Indonesia
- Miang Besar Coal Terminal - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- SMC Global Power, Philippines
- Central Electricity Authority - India
- Sinarmas Energy and Mining - Indonesia
- Rashtriya Ispat Nigam Limited - India
- Vedanta Resources Plc - India
- Agrawal Coal Company - India
- Heidelberg Cement - Germany
- OPG Power Generation Pvt Ltd - India
- Bharathi Cement Corporation - India
- Chamber of Mines of South Africa
- Therma Luzon, Inc, Philippines
- AsiaOL BioFuels Corp., Philippines
- Independent Power Producers Association of India
- International Coal Ventures Pvt Ltd - India
- SN Aboitiz Power Inc, Philippines
- Kaltim Prima Coal - Indonesia
- Bhatia International Limited - India
- European Bulk Services B.V. - Netherlands
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- GAC Shipping (India) Pvt Ltd
- Directorate General of MIneral and Coal - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Price Waterhouse Coopers - Russia
- Straits Asia Resources Limited - Singapore
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