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