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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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- Rashtriya Ispat Nigam Limited - India
- Leighton Contractors Pty Ltd - Australia
- Coastal Gujarat Power Limited - India
- GVK Power & Infra Limited - India
- Bhushan Steel Limited - India
- South Luzon Thermal Energy Corporation
- Tata Chemicals Ltd - India
- Karbindo Abesyapradhi - Indoneisa
- Wood Mackenzie - Singapore
- Barasentosa Lestari - Indonesia
- PowerSource Philippines DevCo
- Mercuria Energy - Indonesia
- Mjunction Services Limited - India
- Star Paper Mills Limited - India
- Riau Bara Harum - Indonesia
- Global Green Power PLC Corporation, Philippines
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Bayan Resources Tbk. - Indonesia
- Petron Corporation, Philippines
- PTC India Limited - India
- The State Trading Corporation of India Ltd
- Meenaskhi Energy Private Limited - India
- Planning Commission, India
- Parry Sugars Refinery, India
- Bharathi Cement Corporation - India
- Indogreen Group - Indonesia
- Karaikal Port Pvt Ltd - India
- The University of Queensland
- Commonwealth Bank - Australia
- Chettinad Cement Corporation Ltd - India
- GN Power Mariveles Coal Plant, Philippines
- Ministry of Finance - Indonesia
- Lanco Infratech Ltd - India
- White Energy Company Limited
- Alfred C Toepfer International GmbH - Germany
- India Bulls Power Limited - India
- Malabar Cements Ltd - India
- SMG Consultants - Indonesia
- Indian Energy Exchange, India
- Gujarat Sidhee Cement - India
- AsiaOL BioFuels Corp., Philippines
- Sical Logistics Limited - India
- Aboitiz Power Corporation - Philippines
- Miang Besar Coal Terminal - Indonesia
- Pendopo Energi Batubara - Indonesia
- Makarim & Taira - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Electricity Authority, New Zealand
- Kalimantan Lumbung Energi - Indonesia
- Interocean Group of Companies - India
- Salva Resources Pvt Ltd - India
- Petrochimia International Co. Ltd.- Taiwan
- Directorate General of MIneral and Coal - Indonesia
- Central Electricity Authority - India
- Vizag Seaport Private Limited - India
- Vedanta Resources Plc - India
- Sree Jayajothi Cements Limited - India
- Sojitz Corporation - Japan
- Semirara Mining Corp, Philippines
- Merrill Lynch Commodities Europe
- Bank of Tokyo Mitsubishi UFJ Ltd
- Eastern Energy - Thailand
- Maharashtra Electricity Regulatory Commission - India
- Romanian Commodities Exchange
- Ambuja Cements Ltd - India
- Cement Manufacturers Association - India
- TeaM Sual Corporation - Philippines
- Energy Link Ltd, New Zealand
- Toyota Tsusho Corporation, Japan
- Thai Mozambique Logistica
- Formosa Plastics Group - Taiwan
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Baramulti Group, Indonesia
- Renaissance Capital - South Africa
- Rio Tinto Coal - Australia
- Georgia Ports Authority, United States
- VISA Power Limited - India
- Dalmia Cement Bharat India
- Globalindo Alam Lestari - Indonesia
- Central Java Power - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- PNOC Exploration Corporation - Philippines
- Parliament of New Zealand
- Ministry of Transport, Egypt
- Singapore Mercantile Exchange
- New Zealand Coal & Carbon
- Africa Commodities Group - South Africa
- Sinarmas Energy and Mining - Indonesia
- Kideco Jaya Agung - Indonesia
- Tamil Nadu electricity Board
- Attock Cement Pakistan Limited
- Medco Energi Mining Internasional
- Oldendorff Carriers - Singapore
- PetroVietnam Power Coal Import and Supply Company
- Economic Council, Georgia
- IHS Mccloskey Coal Group - USA
- Kohat Cement Company Ltd. - Pakistan
- Bhoruka Overseas - Indonesia
- Carbofer General Trading SA - India
- International Coal Ventures Pvt Ltd - India
- Wilmar Investment Holdings
- Gujarat Electricity Regulatory Commission - India
- Kepco SPC Power Corporation, Philippines
- Pipit Mutiara Jaya. PT, Indonesia
- San Jose City I Power Corp, Philippines
- Krishnapatnam Port Company Ltd. - India
- Independent Power Producers Association of India
- Heidelberg Cement - Germany
- Uttam Galva Steels Limited - India
- Edison Trading Spa - Italy
- Bukit Asam (Persero) Tbk - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Binh Thuan Hamico - Vietnam
- CIMB Investment Bank - Malaysia
- Latin American Coal - Colombia
- Holcim Trading Pte Ltd - Singapore
- Kapuas Tunggal Persada - Indonesia
- Deloitte Consulting - India
- GAC Shipping (India) Pvt Ltd
- Chamber of Mines of South Africa
- Posco Energy - South Korea
- McConnell Dowell - Australia
- Borneo Indobara - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Altura Mining Limited, Indonesia
- Simpson Spence & Young - Indonesia
- ICICI Bank Limited - India
- Ceylon Electricity Board - Sri Lanka
- Indo Tambangraya Megah - Indonesia
- Thiess Contractors Indonesia
- European Bulk Services B.V. - Netherlands
- Port Waratah Coal Services - Australia
- Orica Australia Pty. Ltd.
- Intertek Mineral Services - Indonesia
- Bukit Baiduri Energy - Indonesia
- Iligan Light & Power Inc, Philippines
- Maheswari Brothers Coal Limited - India
- Global Business Power Corporation, Philippines
- Kumho Petrochemical, South Korea
- Larsen & Toubro Limited - India
- Bangladesh Power Developement Board
- Mercator Lines Limited - India
- London Commodity Brokers - England
- Bulk Trading Sa - Switzerland
- Goldman Sachs - Singapore
- Coal and Oil Company - UAE
- Therma Luzon, Inc, Philippines
- CNBM International Corporation - China
- Jorong Barutama Greston.PT - Indonesia
- Agrawal Coal Company - India
- Bukit Makmur.PT - Indonesia
- Billiton Holdings Pty Ltd - Australia
- MS Steel International - UAE
- Asmin Koalindo Tuhup - Indonesia
- Banpu Public Company Limited - Thailand
- Timah Investasi Mineral - Indoneisa
- Electricity Generating Authority of Thailand
- Mintek Dendrill Indonesia
- Meralco Power Generation, Philippines
- Jaiprakash Power Ventures ltd
- Bhatia International Limited - India
- Aditya Birla Group - India
- Jindal Steel & Power Ltd - India
- Standard Chartered Bank - UAE
- Cigading International Bulk Terminal - Indonesia
- LBH Netherlands Bv - Netherlands
- Coalindo Energy - Indonesia
- Global Coal Blending Company Limited - Australia
- Orica Mining Services - Indonesia
- Kartika Selabumi Mining - Indonesia
- Metalloyd Limited - United Kingdom
- Offshore Bulk Terminal Pte Ltd, Singapore
- Gujarat Mineral Development Corp Ltd - India
- Trasteel International SA, Italy
- Videocon Industries ltd - India
- Power Finance Corporation Ltd., India
- Siam City Cement - Thailand
- Kaltim Prima Coal - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Indika Energy - Indonesia
- Madhucon Powers Ltd - India
- Anglo American - United Kingdom
- Ind-Barath Power Infra Limited - India
- Sarangani Energy Corporation, Philippines
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- GMR Energy Limited - India
- Manunggal Multi Energi - Indonesia
- Energy Development Corp, Philippines
- Directorate Of Revenue Intelligence - India
- Samtan Co., Ltd - South Korea
- Sindya Power Generating Company Private Ltd
- Sakthi Sugars Limited - India
- Marubeni Corporation - India
- Minerals Council of Australia
- Essar Steel Hazira Ltd - India
- SMC Global Power, Philippines
- Xindia Steels Limited - India
- Ministry of Mines - Canada
- Australian Commodity Traders Exchange
- Eastern Coal Council - USA
- ASAPP Information Group - India
- Straits Asia Resources Limited - Singapore
- Savvy Resources Ltd - HongKong
- Siam City Cement PLC, Thailand
- Semirara Mining and Power Corporation, Philippines
- Grasim Industreis Ltd - India
- Indian Oil Corporation Limited
- OPG Power Generation Pvt Ltd - India
- SN Aboitiz Power Inc, Philippines
- Kobexindo Tractors - Indoneisa
- Australian Coal Association
- Price Waterhouse Coopers - Russia
- IEA Clean Coal Centre - UK
- Indonesian Coal Mining Association
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Antam Resourcindo - Indonesia
- The Treasury - Australian Government
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