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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, 30 September 09
INDIA CEMENTS SET TO PRODUCE POWER; EYES COAL MINE IN INDONESIA
Financial Express reported that, Tamil Nadu-based India Cements Ltd (ICL) has firmed up plans to produce power to meet its current and future requir ...
Wednesday, 30 September 09
COKING COAL PRICES MAY TOUCH $200/TN IN 2010-11
Business Standard reported that, Driven by surge in imports of coking coal by China, growth in Japanese steel output and signs of recovery in the In ...
Wednesday, 30 September 09
PURNOMO BIDS 'GOODBYE' TO ENERGY MINISTRY
The Jakarta globe reported that, In what could be construed as a resignation speech from a government official — but perhaps wasn’t &mda ...
Tuesday, 29 September 09
MINING AND ENERGY DAY 2009
The Minister of Energy and Mineral Resources, Purnomo Yusgiantoro led the ceremony marking 2009 Mining and Energy Day celebrations, held at the Depa ...
Tuesday, 29 September 09
BUKIT ASAM REDUCES ITS SALES TARGET
Tempo Interactive reported that, PT Tambang Batubara Bukit Asam Tbk has decided to reduce its sales target this year from 14.5 million tons of coal ...
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- SN Aboitiz Power Inc, Philippines
- Rio Tinto Coal - Australia
- Posco Energy - South Korea
- Siam City Cement - Thailand
- Mjunction Services Limited - India
- Globalindo Alam Lestari - Indonesia
- Bhushan Steel Limited - India
- SMC Global Power, Philippines
- Ceylon Electricity Board - Sri Lanka
- Manunggal Multi Energi - Indonesia
- Ministry of Mines - Canada
- Toyota Tsusho Corporation, Japan
- PNOC Exploration Corporation - Philippines
- Makarim & Taira - Indonesia
- Salva Resources Pvt Ltd - India
- Bhoruka Overseas - Indonesia
- Vizag Seaport Private Limited - India
- LBH Netherlands Bv - Netherlands
- Jindal Steel & Power Ltd - India
- Power Finance Corporation Ltd., India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Anglo American - United Kingdom
- Bukit Makmur.PT - Indonesia
- Mercuria Energy - Indonesia
- Mercator Lines Limited - India
- Indian Energy Exchange, India
- Uttam Galva Steels Limited - India
- Carbofer General Trading SA - India
- Trasteel International SA, Italy
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Antam Resourcindo - Indonesia
- Indo Tambangraya Megah - Indonesia
- Marubeni Corporation - India
- Medco Energi Mining Internasional
- VISA Power Limited - India
- TeaM Sual Corporation - Philippines
- Price Waterhouse Coopers - Russia
- PTC India Limited - India
- Heidelberg Cement - Germany
- Karbindo Abesyapradhi - Indoneisa
- European Bulk Services B.V. - Netherlands
- Coastal Gujarat Power Limited - India
- Larsen & Toubro Limited - India
- GAC Shipping (India) Pvt Ltd
- Intertek Mineral Services - Indonesia
- Semirara Mining Corp, Philippines
- Siam City Cement PLC, Thailand
- CIMB Investment Bank - Malaysia
- Gujarat Electricity Regulatory Commission - India
- Singapore Mercantile Exchange
- Cigading International Bulk Terminal - Indonesia
- Merrill Lynch Commodities Europe
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Port Waratah Coal Services - Australia
- Holcim Trading Pte Ltd - Singapore
- Binh Thuan Hamico - Vietnam
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Latin American Coal - Colombia
- Bahari Cakrawala Sebuku - Indonesia
- Baramulti Group, Indonesia
- Central Electricity Authority - India
- SMG Consultants - Indonesia
- Kapuas Tunggal Persada - Indonesia
- Meenaskhi Energy Private Limited - India
- Aditya Birla Group - India
- San Jose City I Power Corp, Philippines
- Central Java Power - Indonesia
- Therma Luzon, Inc, Philippines
- Agrawal Coal Company - India
- Australian Commodity Traders Exchange
- Simpson Spence & Young - Indonesia
- Deloitte Consulting - India
- Global Green Power PLC Corporation, Philippines
- Petron Corporation, Philippines
- Ministry of Finance - Indonesia
- Grasim Industreis Ltd - India
- Billiton Holdings Pty Ltd - Australia
- Georgia Ports Authority, United States
- Indogreen Group - Indonesia
- Bharathi Cement Corporation - India
- Barasentosa Lestari - Indonesia
- Bulk Trading Sa - Switzerland
- Kideco Jaya Agung - Indonesia
- McConnell Dowell - Australia
- Kalimantan Lumbung Energi - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Aboitiz Power Corporation - Philippines
- Kobexindo Tractors - Indoneisa
- Savvy Resources Ltd - HongKong
- Karaikal Port Pvt Ltd - India
- Timah Investasi Mineral - Indoneisa
- ICICI Bank Limited - India
- Planning Commission, India
- Global Coal Blending Company Limited - Australia
- Meralco Power Generation, Philippines
- Xindia Steels Limited - India
- Bhatia International Limited - India
- Thiess Contractors Indonesia
- Banpu Public Company Limited - Thailand
- New Zealand Coal & Carbon
- Minerals Council of Australia
- Jaiprakash Power Ventures ltd
- Directorate General of MIneral and Coal - Indonesia
- Iligan Light & Power Inc, Philippines
- Borneo Indobara - Indonesia
- Sical Logistics Limited - India
- Sojitz Corporation - Japan
- Coalindo Energy - Indonesia
- Standard Chartered Bank - UAE
- Chamber of Mines of South Africa
- Straits Asia Resources Limited - Singapore
- Electricity Authority, New Zealand
- MS Steel International - UAE
- GMR Energy Limited - India
- Sinarmas Energy and Mining - Indonesia
- Ministry of Transport, Egypt
- Eastern Coal Council - USA
- The Treasury - Australian Government
- Riau Bara Harum - Indonesia
- Kepco SPC Power Corporation, Philippines
- Offshore Bulk Terminal Pte Ltd, Singapore
- White Energy Company Limited
- Wood Mackenzie - Singapore
- Ind-Barath Power Infra Limited - India
- Renaissance Capital - South Africa
- Wilmar Investment Holdings
- Gujarat Mineral Development Corp Ltd - India
- International Coal Ventures Pvt Ltd - India
- Indika Energy - Indonesia
- Interocean Group of Companies - India
- Independent Power Producers Association of India
- Bayan Resources Tbk. - Indonesia
- Essar Steel Hazira Ltd - India
- AsiaOL BioFuels Corp., Philippines
- Cement Manufacturers Association - India
- The State Trading Corporation of India Ltd
- Petrochimia International Co. Ltd.- Taiwan
- IHS Mccloskey Coal Group - USA
- The University of Queensland
- Alfred C Toepfer International GmbH - Germany
- ASAPP Information Group - India
- Economic Council, Georgia
- Thai Mozambique Logistica
- Africa Commodities Group - South Africa
- CNBM International Corporation - China
- Electricity Generating Authority of Thailand
- Samtan Co., Ltd - South Korea
- Kohat Cement Company Ltd. - Pakistan
- Madhucon Powers Ltd - India
- Lanco Infratech Ltd - India
- Bangladesh Power Developement Board
- Chettinad Cement Corporation Ltd - India
- Global Business Power Corporation, Philippines
- Edison Trading Spa - Italy
- Australian Coal Association
- Kaltim Prima Coal - Indonesia
- Indian Oil Corporation Limited
- Ambuja Cements Ltd - India
- GVK Power & Infra Limited - India
- Metalloyd Limited - United Kingdom
- Malabar Cements Ltd - India
- Goldman Sachs - Singapore
- South Luzon Thermal Energy Corporation
- Pendopo Energi Batubara - Indonesia
- Formosa Plastics Group - Taiwan
- Tamil Nadu electricity Board
- IEA Clean Coal Centre - UK
- Orica Mining Services - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Directorate Of Revenue Intelligence - India
- Rashtriya Ispat Nigam Limited - India
- London Commodity Brokers - England
- Krishnapatnam Port Company Ltd. - India
- Altura Mining Limited, Indonesia
- Attock Cement Pakistan Limited
- Kartika Selabumi Mining - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Sarangani Energy Corporation, Philippines
- Vijayanagar Sugar Pvt Ltd - India
- Jorong Barutama Greston.PT - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- TNB Fuel Sdn Bhd - Malaysia
- Gujarat Sidhee Cement - India
- Parry Sugars Refinery, India
- Tata Chemicals Ltd - India
- Eastern Energy - Thailand
- Energy Link Ltd, New Zealand
- Sindya Power Generating Company Private Ltd
- Mintek Dendrill Indonesia
- Sree Jayajothi Cements Limited - India
- PowerSource Philippines DevCo
- Maheswari Brothers Coal Limited - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Orica Australia Pty. Ltd.
- Vedanta Resources Plc - India
- Coal and Oil Company - UAE
- Commonwealth Bank - Australia
- Oldendorff Carriers - Singapore
- Asmin Koalindo Tuhup - Indonesia
- Dalmia Cement Bharat India
- GN Power Mariveles Coal Plant, Philippines
- OPG Power Generation Pvt Ltd - India
- Kumho Petrochemical, South Korea
- Maharashtra Electricity Regulatory Commission - India
- Energy Development Corp, Philippines
- Bukit Baiduri Energy - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Sakthi Sugars Limited - India
- Romanian Commodities Exchange
- Miang Besar Coal Terminal - Indonesia
- Videocon Industries ltd - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Parliament of New Zealand
- Star Paper Mills Limited - India
- India Bulls Power Limited - India
- Indonesian Coal Mining Association
- Pipit Mutiara Jaya. PT, Indonesia
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