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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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Monday, 28 September 09
INDONESIA UNLIKELY TO PASS NEW MINING RULES IN 2009
Reuters reported that, Indonesia is unlikely to complete final regulations attached to a new mining and coal law this year, an official said on Mond ...
Monday, 28 September 09
TATA POWER SCOUTS FOR COAL BLOCKS ABROAD
Business Standard reported that, private power producer Tata Power is scouting for coal mines abroad, including Australia and Mozambique, to meet de ...
Saturday, 26 September 09
THE INDIA / FAR EAST SEEMS WILL BE FIRM NEXT WEEK - VISTAAR
COALspot.com (Singapore): The dry bulk market was soft this week and the BDI dropped by almost 7 pct to 2,183 points. The cape size index dropped by ...
Saturday, 26 September 09
GSECL PLANS TO PROCURE 15 LAKH (1.5 MILLION) MT OF IMPORTED COAL
Business Standard reported that, State-run power generation company, Gujarat State Electricity Corporation Ltd (GSECL) intends to procure 15 lakh (1 ...
Saturday, 26 September 09
SAIL TO SET UP TWO SLAG-BASED CEMENT MANUFACTURING UNITS
Rediff Business reported that, Government-owned Steel Authority of India Ltd, the country's largest steel producer, is looking to set up two greenf ...
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- Indian Energy Exchange, India
- Larsen & Toubro Limited - India
- Globalindo Alam Lestari - Indonesia
- Kideco Jaya Agung - Indonesia
- Sojitz Corporation - Japan
- Indonesian Coal Mining Association
- Rio Tinto Coal - Australia
- Vizag Seaport Private Limited - India
- Mjunction Services Limited - India
- Port Waratah Coal Services - Australia
- London Commodity Brokers - England
- Aboitiz Power Corporation - Philippines
- Chettinad Cement Corporation Ltd - India
- SN Aboitiz Power Inc, Philippines
- Georgia Ports Authority, United States
- Oldendorff Carriers - Singapore
- Karaikal Port Pvt Ltd - India
- South Luzon Thermal Energy Corporation
- Bukit Baiduri Energy - Indonesia
- Meenaskhi Energy Private Limited - India
- Rashtriya Ispat Nigam Limited - India
- IHS Mccloskey Coal Group - USA
- Mercuria Energy - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Semirara Mining and Power Corporation, Philippines
- Borneo Indobara - Indonesia
- IEA Clean Coal Centre - UK
- Altura Mining Limited, Indonesia
- Toyota Tsusho Corporation, Japan
- Bulk Trading Sa - Switzerland
- Kaltim Prima Coal - Indonesia
- Global Green Power PLC Corporation, Philippines
- Gujarat Mineral Development Corp Ltd - India
- Parry Sugars Refinery, India
- White Energy Company Limited
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- New Zealand Coal & Carbon
- Krishnapatnam Port Company Ltd. - India
- Madhucon Powers Ltd - India
- Anglo American - United Kingdom
- Bukit Makmur.PT - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Sinarmas Energy and Mining - Indonesia
- Wilmar Investment Holdings
- Goldman Sachs - Singapore
- Orica Mining Services - Indonesia
- Australian Coal Association
- Bharathi Cement Corporation - India
- Kartika Selabumi Mining - Indonesia
- Uttam Galva Steels Limited - India
- Intertek Mineral Services - Indonesia
- Tamil Nadu electricity Board
- PetroVietnam Power Coal Import and Supply Company
- Essar Steel Hazira Ltd - India
- The University of Queensland
- MS Steel International - UAE
- Energy Development Corp, Philippines
- Power Finance Corporation Ltd., India
- Ministry of Finance - Indonesia
- Electricity Authority, New Zealand
- Maheswari Brothers Coal Limited - India
- Bhatia International Limited - India
- Metalloyd Limited - United Kingdom
- Central Java Power - Indonesia
- PNOC Exploration Corporation - Philippines
- Economic Council, Georgia
- Singapore Mercantile Exchange
- San Jose City I Power Corp, Philippines
- Mintek Dendrill Indonesia
- Simpson Spence & Young - Indonesia
- ASAPP Information Group - India
- Sindya Power Generating Company Private Ltd
- LBH Netherlands Bv - Netherlands
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Sical Logistics Limited - India
- Standard Chartered Bank - UAE
- Sree Jayajothi Cements Limited - India
- GAC Shipping (India) Pvt Ltd
- Bangladesh Power Developement Board
- Pipit Mutiara Jaya. PT, Indonesia
- McConnell Dowell - Australia
- Savvy Resources Ltd - HongKong
- Edison Trading Spa - Italy
- India Bulls Power Limited - India
- Price Waterhouse Coopers - Russia
- GN Power Mariveles Coal Plant, Philippines
- Parliament of New Zealand
- Neyveli Lignite Corporation Ltd, - India
- Orica Australia Pty. Ltd.
- Cigading International Bulk Terminal - Indonesia
- Carbofer General Trading SA - India
- Semirara Mining Corp, Philippines
- CNBM International Corporation - China
- SMC Global Power, Philippines
- Siam City Cement - Thailand
- Bank of Tokyo Mitsubishi UFJ Ltd
- Directorate General of MIneral and Coal - Indonesia
- Eastern Energy - Thailand
- Dalmia Cement Bharat India
- Siam City Cement PLC, Thailand
- Energy Link Ltd, New Zealand
- Ambuja Cements Ltd - India
- Global Business Power Corporation, Philippines
- Ministry of Transport, Egypt
- Videocon Industries ltd - India
- Kobexindo Tractors - Indoneisa
- VISA Power Limited - India
- Ceylon Electricity Board - Sri Lanka
- Deloitte Consulting - India
- Kapuas Tunggal Persada - Indonesia
- Alfred C Toepfer International GmbH - Germany
- Pendopo Energi Batubara - Indonesia
- OPG Power Generation Pvt Ltd - India
- TNB Fuel Sdn Bhd - Malaysia
- Medco Energi Mining Internasional
- Indian Oil Corporation Limited
- Salva Resources Pvt Ltd - India
- GMR Energy Limited - India
- Jindal Steel & Power Ltd - India
- Xindia Steels Limited - India
- Gujarat Sidhee Cement - India
- Star Paper Mills Limited - India
- Cement Manufacturers Association - India
- TeaM Sual Corporation - Philippines
- SMG Consultants - Indonesia
- Chamber of Mines of South Africa
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Leighton Contractors Pty Ltd - Australia
- Indogreen Group - Indonesia
- Attock Cement Pakistan Limited
- Eastern Coal Council - USA
- Binh Thuan Hamico - Vietnam
- Indika Energy - Indonesia
- Africa Commodities Group - South Africa
- Vedanta Resources Plc - India
- Holcim Trading Pte Ltd - Singapore
- Miang Besar Coal Terminal - Indonesia
- Sarangani Energy Corporation, Philippines
- Independent Power Producers Association of India
- Coalindo Energy - Indonesia
- Central Electricity Authority - India
- Kumho Petrochemical, South Korea
- PTC India Limited - India
- Commonwealth Bank - Australia
- Baramulti Group, Indonesia
- Ministry of Mines - Canada
- PowerSource Philippines DevCo
- Asmin Koalindo Tuhup - Indonesia
- Jaiprakash Power Ventures ltd
- Bhoruka Overseas - Indonesia
- Samtan Co., Ltd - South Korea
- Sakthi Sugars Limited - India
- Vijayanagar Sugar Pvt Ltd - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Directorate Of Revenue Intelligence - India
- Thai Mozambique Logistica
- Ind-Barath Power Infra Limited - India
- Barasentosa Lestari - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Petron Corporation, Philippines
- Grasim Industreis Ltd - India
- Posco Energy - South Korea
- Kalimantan Lumbung Energi - Indonesia
- Aditya Birla Group - India
- Bhushan Steel Limited - India
- Antam Resourcindo - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- International Coal Ventures Pvt Ltd - India
- Petrochimia International Co. Ltd.- Taiwan
- Indo Tambangraya Megah - Indonesia
- CIMB Investment Bank - Malaysia
- Electricity Generating Authority of Thailand
- AsiaOL BioFuels Corp., Philippines
- Renaissance Capital - South Africa
- Merrill Lynch Commodities Europe
- Bukit Asam (Persero) Tbk - Indonesia
- Kepco SPC Power Corporation, Philippines
- Manunggal Multi Energi - Indonesia
- Planning Commission, India
- Tata Chemicals Ltd - India
- Interocean Group of Companies - India
- Romanian Commodities Exchange
- Therma Luzon, Inc, Philippines
- Gujarat Electricity Regulatory Commission - India
- Coal and Oil Company - UAE
- Timah Investasi Mineral - Indoneisa
- Agrawal Coal Company - India
- Riau Bara Harum - Indonesia
- Trasteel International SA, Italy
- Heidelberg Cement - Germany
- The Treasury - Australian Government
- Meralco Power Generation, Philippines
- Lanco Infratech Ltd - India
- Karbindo Abesyapradhi - Indoneisa
- European Bulk Services B.V. - Netherlands
- ICICI Bank Limited - India
- Malabar Cements Ltd - India
- Billiton Holdings Pty Ltd - Australia
- Iligan Light & Power Inc, Philippines
- GVK Power & Infra Limited - India
- Banpu Public Company Limited - Thailand
- Thiess Contractors Indonesia
- Latin American Coal - Colombia
- The State Trading Corporation of India Ltd
- Global Coal Blending Company Limited - Australia
- Wood Mackenzie - Singapore
- Mercator Lines Limited - India
- Makarim & Taira - Indonesia
- Straits Asia Resources Limited - Singapore
- Marubeni Corporation - India
- Bahari Cakrawala Sebuku - Indonesia
- Australian Commodity Traders Exchange
- Formosa Plastics Group - Taiwan
- Minerals Council of Australia
- Bayan Resources Tbk. - Indonesia
- Coastal Gujarat Power Limited - India
- Offshore Bulk Terminal Pte Ltd, Singapore
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