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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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Thursday, 24 September 09
S.KOREA HYUNDAI STEEL TO BUY COAL FROM SIBERIA
Reuters reported that, South Korea's Hyundai Steel said on Wednesday it will buy a maximum of 300,000 tonnes of coal per year from Siberian Anthrac ...
Thursday, 24 September 09
NO IMPORTED COAL-BASED UMPPS: TATA POWER
Will wait until policy environment becomes more favourable.
Business Standard reported that, Tata Power Company (TPC), India’s largest priv ...
Thursday, 24 September 09
BUMI RAISES $1.9 BILLION SELLING DEBT TO CHINA'S CIC
Bloomberg reported that, PT Bumi Resources, Indonesia’s biggest coal producer, said it raised $1.9 billion selling debt to China’s sover ...
Thursday, 24 September 09
MACQUARIE DOWNGRADES U.S. COAL SECTOR TO NEUTRAL
Reuters reported that, Macquarie Research downgraded the U.S. coal sector to "neutral" from "overweight" as it believes that dem ...
Thursday, 24 September 09
CHINA WILL BE IMPORTER OF COKING COAL NEXT YEAR, MCCLOSKEY SAYS
Bloomberg reported that, China, the world’s largest coal user and producer, will remain an importer of the fuel through next year, according t ...
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- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Jindal Steel & Power Ltd - India
- Bhushan Steel Limited - India
- Mercuria Energy - Indonesia
- Chamber of Mines of South Africa
- OPG Power Generation Pvt Ltd - India
- Indian Energy Exchange, India
- White Energy Company Limited
- Karaikal Port Pvt Ltd - India
- Kartika Selabumi Mining - Indonesia
- Altura Mining Limited, Indonesia
- Intertek Mineral Services - Indonesia
- Commonwealth Bank - Australia
- SMC Global Power, Philippines
- Borneo Indobara - Indonesia
- Standard Chartered Bank - UAE
- Simpson Spence & Young - Indonesia
- Siam City Cement - Thailand
- CIMB Investment Bank - Malaysia
- The University of Queensland
- Alfred C Toepfer International GmbH - Germany
- SN Aboitiz Power Inc, Philippines
- Price Waterhouse Coopers - Russia
- PNOC Exploration Corporation - Philippines
- European Bulk Services B.V. - Netherlands
- Leighton Contractors Pty Ltd - Australia
- Indonesian Coal Mining Association
- Parry Sugars Refinery, India
- Salva Resources Pvt Ltd - India
- McConnell Dowell - Australia
- Mercator Lines Limited - India
- Tata Chemicals Ltd - India
- Gujarat Sidhee Cement - India
- London Commodity Brokers - England
- Binh Thuan Hamico - Vietnam
- Globalindo Alam Lestari - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Formosa Plastics Group - Taiwan
- Aboitiz Power Corporation - Philippines
- Central Java Power - Indonesia
- Bharathi Cement Corporation - India
- Marubeni Corporation - India
- South Luzon Thermal Energy Corporation
- Chettinad Cement Corporation Ltd - India
- Georgia Ports Authority, United States
- Minerals Council of Australia
- Bayan Resources Tbk. - Indonesia
- Meenaskhi Energy Private Limited - India
- Kepco SPC Power Corporation, Philippines
- Meralco Power Generation, Philippines
- Ministry of Transport, Egypt
- Lanco Infratech Ltd - India
- Ceylon Electricity Board - Sri Lanka
- Savvy Resources Ltd - HongKong
- Kideco Jaya Agung - Indonesia
- Barasentosa Lestari - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Thiess Contractors Indonesia
- MS Steel International - UAE
- Pendopo Energi Batubara - Indonesia
- Ministry of Finance - Indonesia
- Kaltim Prima Coal - Indonesia
- International Coal Ventures Pvt Ltd - India
- GAC Shipping (India) Pvt Ltd
- Kohat Cement Company Ltd. - Pakistan
- Interocean Group of Companies - India
- Petrochimia International Co. Ltd.- Taiwan
- Timah Investasi Mineral - Indoneisa
- Larsen & Toubro Limited - India
- Uttam Galva Steels Limited - India
- Tamil Nadu electricity Board
- TeaM Sual Corporation - Philippines
- Coal and Oil Company - UAE
- Grasim Industreis Ltd - India
- Posco Energy - South Korea
- Semirara Mining Corp, Philippines
- Billiton Holdings Pty Ltd - Australia
- Coastal Gujarat Power Limited - India
- Energy Link Ltd, New Zealand
- GMR Energy Limited - India
- Jorong Barutama Greston.PT - Indonesia
- Bulk Trading Sa - Switzerland
- San Jose City I Power Corp, Philippines
- Rio Tinto Coal - Australia
- Petron Corporation, Philippines
- Maheswari Brothers Coal Limited - India
- ICICI Bank Limited - India
- SMG Consultants - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Vedanta Resources Plc - India
- Eastern Coal Council - USA
- Oldendorff Carriers - Singapore
- Power Finance Corporation Ltd., India
- Mintek Dendrill Indonesia
- Indian Oil Corporation Limited
- Star Paper Mills Limited - India
- Riau Bara Harum - Indonesia
- Carbofer General Trading SA - India
- Bukit Makmur.PT - Indonesia
- Jaiprakash Power Ventures ltd
- Ind-Barath Power Infra Limited - India
- Bukit Baiduri Energy - Indonesia
- Indika Energy - Indonesia
- Sree Jayajothi Cements Limited - India
- Central Electricity Authority - India
- Independent Power Producers Association of India
- Edison Trading Spa - Italy
- Antam Resourcindo - Indonesia
- Bhoruka Overseas - Indonesia
- Wilmar Investment Holdings
- Directorate Of Revenue Intelligence - India
- Planning Commission, India
- Essar Steel Hazira Ltd - India
- Medco Energi Mining Internasional
- Mjunction Services Limited - India
- Miang Besar Coal Terminal - Indonesia
- Rashtriya Ispat Nigam Limited - India
- Heidelberg Cement - Germany
- Renaissance Capital - South Africa
- Iligan Light & Power Inc, Philippines
- Samtan Co., Ltd - South Korea
- Siam City Cement PLC, Thailand
- Global Business Power Corporation, Philippines
- Therma Luzon, Inc, Philippines
- CNBM International Corporation - China
- Economic Council, Georgia
- Maharashtra Electricity Regulatory Commission - India
- Directorate General of MIneral and Coal - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Romanian Commodities Exchange
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Agrawal Coal Company - India
- Deloitte Consulting - India
- GVK Power & Infra Limited - India
- Sojitz Corporation - Japan
- The State Trading Corporation of India Ltd
- Banpu Public Company Limited - Thailand
- Manunggal Multi Energi - Indonesia
- Indo Tambangraya Megah - Indonesia
- New Zealand Coal & Carbon
- Sical Logistics Limited - India
- Bahari Cakrawala Sebuku - Indonesia
- Metalloyd Limited - United Kingdom
- Orica Mining Services - Indonesia
- Global Green Power PLC Corporation, Philippines
- Electricity Authority, New Zealand
- Kobexindo Tractors - Indoneisa
- Malabar Cements Ltd - India
- The Treasury - Australian Government
- Krishnapatnam Port Company Ltd. - India
- Sinarmas Energy and Mining - Indonesia
- Electricity Generating Authority of Thailand
- Gujarat Electricity Regulatory Commission - India
- TNB Fuel Sdn Bhd - Malaysia
- Eastern Energy - Thailand
- Merrill Lynch Commodities Europe
- Holcim Trading Pte Ltd - Singapore
- Xindia Steels Limited - India
- Anglo American - United Kingdom
- Makarim & Taira - Indonesia
- Bangladesh Power Developement Board
- Aditya Birla Group - India
- Kapuas Tunggal Persada - Indonesia
- Singapore Mercantile Exchange
- Baramulti Group, Indonesia
- Australian Coal Association
- Indogreen Group - Indonesia
- India Bulls Power Limited - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Madhucon Powers Ltd - India
- Ambuja Cements Ltd - India
- Africa Commodities Group - South Africa
- ASAPP Information Group - India
- VISA Power Limited - India
- IHS Mccloskey Coal Group - USA
- LBH Netherlands Bv - Netherlands
- Coalindo Energy - Indonesia
- PowerSource Philippines DevCo
- Sakthi Sugars Limited - India
- Bhatia International Limited - India
- Neyveli Lignite Corporation Ltd, - India
- Ministry of Mines - Canada
- PTC India Limited - India
- Karbindo Abesyapradhi - Indoneisa
- Straits Asia Resources Limited - Singapore
- Kumho Petrochemical, South Korea
- Kalimantan Lumbung Energi - Indonesia
- Global Coal Blending Company Limited - Australia
- Thai Mozambique Logistica
- Energy Development Corp, Philippines
- Port Waratah Coal Services - Australia
- Australian Commodity Traders Exchange
- Vijayanagar Sugar Pvt Ltd - India
- Asmin Koalindo Tuhup - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Sindya Power Generating Company Private Ltd
- Pipit Mutiara Jaya. PT, Indonesia
- Attock Cement Pakistan Limited
- Sarangani Energy Corporation, Philippines
- Cigading International Bulk Terminal - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Bukit Asam (Persero) Tbk - Indonesia
- Wood Mackenzie - Singapore
- Orica Australia Pty. Ltd.
- IEA Clean Coal Centre - UK
- Cement Manufacturers Association - India
- Dalmia Cement Bharat India
- Latin American Coal - Colombia
- AsiaOL BioFuels Corp., Philippines
- Trasteel International SA, Italy
- GN Power Mariveles Coal Plant, Philippines
- Goldman Sachs - Singapore
- Videocon Industries ltd - India
- Vizag Seaport Private Limited - India
- Toyota Tsusho Corporation, Japan
- Parliament of New Zealand
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