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