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