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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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Saturday, 12 September 09
$1.5B KALIMANTAN COAL RAIL TENDER EXPECTED BY YEAR-END
The Jakarta Globe reported that, In the second announcement on major coal-railway projects in as many days, Central Kalimantan’s top official ...
Friday, 11 September 09
INDONESIA COAL-PRICES AT $66, SUPPLIERS OFFER AT BARGAIN PRICES
Some Indonesian producers were rushing to sell coal at bargain prices to ease excess stocks and catch shipments before the Muslim Eid Al-Fitr festiv ...
Friday, 11 September 09
ALPHA NATURAL EXPECTS HIGHER MET, STEAM COAL PRICES IN 2010
Mining Weekly reported that, There are encouraging signs that metallurgical coal demand in most key global markets is either returning or poised to ...
Friday, 11 September 09
POWER SECTOR'S DEPENDENCE ON COAL TO CONTINUE
The power sector will continue to be largely dependant on coal-based thermal power plants to meet its energy needs for the next 15-20 years, Power S ...
Friday, 11 September 09
L&T EYES AUSSIE COAL MINE
Commodity Online reported that, Larsen and Toubro is in talks to buy a thermal coal mine in Australia for about $300 million. Thermal coal is used f ...
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- Videocon Industries ltd - India
- Global Business Power Corporation, Philippines
- Price Waterhouse Coopers - Russia
- Sarangani Energy Corporation, Philippines
- Thiess Contractors Indonesia
- Altura Mining Limited, Indonesia
- Wood Mackenzie - Singapore
- Kaltim Prima Coal - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Goldman Sachs - Singapore
- Banpu Public Company Limited - Thailand
- Tamil Nadu electricity Board
- Edison Trading Spa - Italy
- Indian Energy Exchange, India
- Borneo Indobara - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Posco Energy - South Korea
- Romanian Commodities Exchange
- Karbindo Abesyapradhi - Indoneisa
- Port Waratah Coal Services - Australia
- Indonesian Coal Mining Association
- AsiaOL BioFuels Corp., Philippines
- Power Finance Corporation Ltd., India
- Cigading International Bulk Terminal - Indonesia
- Commonwealth Bank - Australia
- Anglo American - United Kingdom
- Savvy Resources Ltd - HongKong
- Jindal Steel & Power Ltd - India
- Mercator Lines Limited - India
- Ceylon Electricity Board - Sri Lanka
- PNOC Exploration Corporation - Philippines
- White Energy Company Limited
- Bayan Resources Tbk. - Indonesia
- Tata Chemicals Ltd - India
- GMR Energy Limited - India
- Riau Bara Harum - Indonesia
- Eastern Energy - Thailand
- IEA Clean Coal Centre - UK
- Kumho Petrochemical, South Korea
- Sindya Power Generating Company Private Ltd
- Renaissance Capital - South Africa
- Kideco Jaya Agung - Indonesia
- Energy Development Corp, Philippines
- Miang Besar Coal Terminal - Indonesia
- Global Green Power PLC Corporation, Philippines
- Indian Oil Corporation Limited
- Aboitiz Power Corporation - Philippines
- Ambuja Cements Ltd - India
- Jaiprakash Power Ventures ltd
- Gujarat Electricity Regulatory Commission - India
- Ministry of Transport, Egypt
- CNBM International Corporation - China
- GAC Shipping (India) Pvt Ltd
- Krishnapatnam Port Company Ltd. - India
- The State Trading Corporation of India Ltd
- Leighton Contractors Pty Ltd - Australia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Star Paper Mills Limited - India
- Gujarat Sidhee Cement - India
- Chamber of Mines of South Africa
- London Commodity Brokers - England
- Bhoruka Overseas - Indonesia
- Maheswari Brothers Coal Limited - India
- Coalindo Energy - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Metalloyd Limited - United Kingdom
- Alfred C Toepfer International GmbH - Germany
- The University of Queensland
- San Jose City I Power Corp, Philippines
- Rio Tinto Coal - Australia
- Australian Commodity Traders Exchange
- Agrawal Coal Company - India
- Parry Sugars Refinery, India
- Maharashtra Electricity Regulatory Commission - India
- SMG Consultants - Indonesia
- Independent Power Producers Association of India
- LBH Netherlands Bv - Netherlands
- Directorate General of MIneral and Coal - Indonesia
- OPG Power Generation Pvt Ltd - India
- VISA Power Limited - India
- Meenaskhi Energy Private Limited - India
- PetroVietnam Power Coal Import and Supply Company
- Kohat Cement Company Ltd. - Pakistan
- Kapuas Tunggal Persada - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Ministry of Mines - Canada
- Planning Commission, India
- Orica Australia Pty. Ltd.
- Sojitz Corporation - Japan
- PowerSource Philippines DevCo
- Thai Mozambique Logistica
- Vijayanagar Sugar Pvt Ltd - India
- Timah Investasi Mineral - Indoneisa
- Kobexindo Tractors - Indoneisa
- Antam Resourcindo - Indonesia
- South Luzon Thermal Energy Corporation
- Central Java Power - Indonesia
- TeaM Sual Corporation - Philippines
- Sinarmas Energy and Mining - Indonesia
- Madhucon Powers Ltd - India
- Oldendorff Carriers - Singapore
- India Bulls Power Limited - India
- Xindia Steels Limited - India
- Sical Logistics Limited - India
- GVK Power & Infra Limited - India
- Barasentosa Lestari - Indonesia
- Directorate Of Revenue Intelligence - India
- Global Coal Blending Company Limited - Australia
- Uttam Galva Steels Limited - India
- MS Steel International - UAE
- Grasim Industreis Ltd - India
- Wilmar Investment Holdings
- Trasteel International SA, Italy
- Indo Tambangraya Megah - Indonesia
- Kartika Selabumi Mining - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Makarim & Taira - Indonesia
- IHS Mccloskey Coal Group - USA
- Marubeni Corporation - India
- Manunggal Multi Energi - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Kepco SPC Power Corporation, Philippines
- Bharathi Cement Corporation - India
- Bangladesh Power Developement Board
- Samtan Co., Ltd - South Korea
- Mjunction Services Limited - India
- Energy Link Ltd, New Zealand
- Eastern Coal Council - USA
- Bahari Cakrawala Sebuku - Indonesia
- Medco Energi Mining Internasional
- Bhatia International Limited - India
- Interocean Group of Companies - India
- Bhushan Steel Limited - India
- Coal and Oil Company - UAE
- Georgia Ports Authority, United States
- Karaikal Port Pvt Ltd - India
- Dalmia Cement Bharat India
- Rashtriya Ispat Nigam Limited - India
- Asmin Koalindo Tuhup - Indonesia
- Globalindo Alam Lestari - Indonesia
- Attock Cement Pakistan Limited
- Toyota Tsusho Corporation, Japan
- Neyveli Lignite Corporation Ltd, - India
- SMC Global Power, Philippines
- Vizag Seaport Private Limited - India
- Bukit Makmur.PT - Indonesia
- Bulk Trading Sa - Switzerland
- Straits Asia Resources Limited - Singapore
- Indogreen Group - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- McConnell Dowell - Australia
- New Zealand Coal & Carbon
- Electricity Generating Authority of Thailand
- Coastal Gujarat Power Limited - India
- Salva Resources Pvt Ltd - India
- Simpson Spence & Young - Indonesia
- Latin American Coal - Colombia
- Baramulti Group, Indonesia
- CIMB Investment Bank - Malaysia
- Sree Jayajothi Cements Limited - India
- Electricity Authority, New Zealand
- Africa Commodities Group - South Africa
- PTC India Limited - India
- Larsen & Toubro Limited - India
- Cement Manufacturers Association - India
- Ministry of Finance - Indonesia
- Mintek Dendrill Indonesia
- Semirara Mining Corp, Philippines
- Ind-Barath Power Infra Limited - India
- Siam City Cement PLC, Thailand
- Intertek Mineral Services - Indonesia
- Minerals Council of Australia
- Iligan Light & Power Inc, Philippines
- Binh Thuan Hamico - Vietnam
- TNB Fuel Sdn Bhd - Malaysia
- Billiton Holdings Pty Ltd - Australia
- Petrochimia International Co. Ltd.- Taiwan
- SN Aboitiz Power Inc, Philippines
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Indika Energy - Indonesia
- Carbofer General Trading SA - India
- Siam City Cement - Thailand
- Malabar Cements Ltd - India
- Bukit Baiduri Energy - Indonesia
- European Bulk Services B.V. - Netherlands
- Aditya Birla Group - India
- Essar Steel Hazira Ltd - India
- Bukit Asam (Persero) Tbk - Indonesia
- Central Electricity Authority - India
- Australian Coal Association
- Standard Chartered Bank - UAE
- Lanco Infratech Ltd - India
- Mercuria Energy - Indonesia
- Sakthi Sugars Limited - India
- Vedanta Resources Plc - India
- Economic Council, Georgia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Singapore Mercantile Exchange
- Deloitte Consulting - India
- Chettinad Cement Corporation Ltd - India
- Meralco Power Generation, Philippines
- Orica Mining Services - Indonesia
- Parliament of New Zealand
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Pipit Mutiara Jaya. PT, Indonesia
- Heidelberg Cement - Germany
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Therma Luzon, Inc, Philippines
- Formosa Plastics Group - Taiwan
- International Coal Ventures Pvt Ltd - India
- Merrill Lynch Commodities Europe
- ICICI Bank Limited - India
- ASAPP Information Group - India
- The Treasury - Australian Government
- Pendopo Energi Batubara - Indonesia
- Petron Corporation, Philippines
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