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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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Wednesday, 07 October 09
COAL INDIA LOOKS AT LONG-TERM PRICE CONTRACTS
Economic Times reported that, Coal India is looking at long-term price contracts, of at least three-four year periods, with foreign entities, 54 of ...
Wednesday, 07 October 09
COAL INDIA, SHIPPING CORP MAY FORM VENTURE TO IMPORT COAL
The venture may be on the lines of the firm that CIL plans with SAIL for coal imports in which both to hold 25%
Live Mint reported that, State-ru ...
Tuesday, 06 October 09
ASIA COAL-PRICE REBOUND TOWARDS $71 ON TENDER ACTIVITY
Reuters reported that, Prices of power-station coal in Australia, a benchmark for Asia, rose 4 percent in the latest week to near $71 a tonne, bolst ...
Tuesday, 06 October 09
BHARATHI CEMENT TO ADD 2.5 MT CAPACITY BY 2010
Business-Standard reported that, Bharathi Cement Corporation (BCC) commenced its commercial operations from its Nallalingayapalli manufacturing plan ...
Tuesday, 06 October 09
MOZAMBIQUE TO BUILD COAL RAILWAY
BBC reported that, Mozambique's government has announced that it has secured $500m (£313m) to build a new railway line. The transport ministe ...
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- Meenaskhi Energy Private Limited - India
- Ministry of Mines - Canada
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Kepco SPC Power Corporation, Philippines
- AsiaOL BioFuels Corp., Philippines
- Borneo Indobara - Indonesia
- Ministry of Transport, Egypt
- GAC Shipping (India) Pvt Ltd
- Thai Mozambique Logistica
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Antam Resourcindo - Indonesia
- Tamil Nadu electricity Board
- PNOC Exploration Corporation - Philippines
- New Zealand Coal & Carbon
- Pipit Mutiara Jaya. PT, Indonesia
- Rio Tinto Coal - Australia
- Neyveli Lignite Corporation Ltd, - India
- CNBM International Corporation - China
- Interocean Group of Companies - India
- Holcim Trading Pte Ltd - Singapore
- Edison Trading Spa - Italy
- Ambuja Cements Ltd - India
- Aboitiz Power Corporation - Philippines
- CIMB Investment Bank - Malaysia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Wood Mackenzie - Singapore
- Kaltim Prima Coal - Indonesia
- Xindia Steels Limited - India
- Videocon Industries ltd - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Thiess Contractors Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Karaikal Port Pvt Ltd - India
- Petrochimia International Co. Ltd.- Taiwan
- Jorong Barutama Greston.PT - Indonesia
- Baramulti Group, Indonesia
- Indo Tambangraya Megah - Indonesia
- Altura Mining Limited, Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- The University of Queensland
- Coalindo Energy - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Uttam Galva Steels Limited - India
- ICICI Bank Limited - India
- Mercator Lines Limited - India
- Sojitz Corporation - Japan
- Kobexindo Tractors - Indoneisa
- Jaiprakash Power Ventures ltd
- Samtan Co., Ltd - South Korea
- Carbofer General Trading SA - India
- Goldman Sachs - Singapore
- Madhucon Powers Ltd - India
- Anglo American - United Kingdom
- Kohat Cement Company Ltd. - Pakistan
- Siam City Cement - Thailand
- Oldendorff Carriers - Singapore
- Energy Development Corp, Philippines
- Essar Steel Hazira Ltd - India
- Pendopo Energi Batubara - Indonesia
- GMR Energy Limited - India
- Maheswari Brothers Coal Limited - India
- Barasentosa Lestari - Indonesia
- IEA Clean Coal Centre - UK
- Ministry of Finance - Indonesia
- PowerSource Philippines DevCo
- Kartika Selabumi Mining - Indonesia
- Bhushan Steel Limited - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Metalloyd Limited - United Kingdom
- Bhoruka Overseas - Indonesia
- Kideco Jaya Agung - Indonesia
- Mercuria Energy - Indonesia
- SN Aboitiz Power Inc, Philippines
- Star Paper Mills Limited - India
- Simpson Spence & Young - Indonesia
- Kumho Petrochemical, South Korea
- OPG Power Generation Pvt Ltd - India
- Attock Cement Pakistan Limited
- Trasteel International SA, Italy
- Independent Power Producers Association of India
- Leighton Contractors Pty Ltd - Australia
- Central Java Power - Indonesia
- SMC Global Power, Philippines
- Grasim Industreis Ltd - India
- Asmin Koalindo Tuhup - Indonesia
- Larsen & Toubro Limited - India
- Orica Mining Services - Indonesia
- Bulk Trading Sa - Switzerland
- Australian Coal Association
- White Energy Company Limited
- Formosa Plastics Group - Taiwan
- VISA Power Limited - India
- Mintek Dendrill Indonesia
- Indian Energy Exchange, India
- Port Waratah Coal Services - Australia
- Binh Thuan Hamico - Vietnam
- Minerals Council of Australia
- Energy Link Ltd, New Zealand
- The Treasury - Australian Government
- Rashtriya Ispat Nigam Limited - India
- McConnell Dowell - Australia
- San Jose City I Power Corp, Philippines
- Commonwealth Bank - Australia
- PTC India Limited - India
- Malabar Cements Ltd - India
- Billiton Holdings Pty Ltd - Australia
- Aditya Birla Group - India
- Indogreen Group - Indonesia
- Ceylon Electricity Board - Sri Lanka
- Mjunction Services Limited - India
- Savvy Resources Ltd - HongKong
- MS Steel International - UAE
- Maharashtra Electricity Regulatory Commission - India
- Siam City Cement PLC, Thailand
- Global Business Power Corporation, Philippines
- Global Green Power PLC Corporation, Philippines
- Renaissance Capital - South Africa
- Eastern Energy - Thailand
- European Bulk Services B.V. - Netherlands
- Iligan Light & Power Inc, Philippines
- Intertek Mineral Services - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Cigading International Bulk Terminal - Indonesia
- Chamber of Mines of South Africa
- Indonesian Coal Mining Association
- Banpu Public Company Limited - Thailand
- Ind-Barath Power Infra Limited - India
- Australian Commodity Traders Exchange
- Semirara Mining and Power Corporation, Philippines
- Indian Oil Corporation Limited
- South Luzon Thermal Energy Corporation
- Agrawal Coal Company - India
- Bukit Baiduri Energy - Indonesia
- Sakthi Sugars Limited - India
- Coastal Gujarat Power Limited - India
- Jindal Steel & Power Ltd - India
- Standard Chartered Bank - UAE
- Medco Energi Mining Internasional
- Sarangani Energy Corporation, Philippines
- Sical Logistics Limited - India
- Africa Commodities Group - South Africa
- Directorate General of MIneral and Coal - Indonesia
- The State Trading Corporation of India Ltd
- Krishnapatnam Port Company Ltd. - India
- Electricity Generating Authority of Thailand
- ASAPP Information Group - India
- London Commodity Brokers - England
- Sree Jayajothi Cements Limited - India
- TeaM Sual Corporation - Philippines
- Central Electricity Authority - India
- Posco Energy - South Korea
- Makarim & Taira - Indonesia
- Bangladesh Power Developement Board
- Sinarmas Energy and Mining - Indonesia
- Cement Manufacturers Association - India
- LBH Netherlands Bv - Netherlands
- International Coal Ventures Pvt Ltd - India
- Salva Resources Pvt Ltd - India
- Economic Council, Georgia
- Vizag Seaport Private Limited - India
- Kapuas Tunggal Persada - Indonesia
- Indika Energy - Indonesia
- Petron Corporation, Philippines
- Electricity Authority, New Zealand
- Latin American Coal - Colombia
- Bayan Resources Tbk. - Indonesia
- GVK Power & Infra Limited - India
- Power Finance Corporation Ltd., India
- Gujarat Sidhee Cement - India
- Miang Besar Coal Terminal - Indonesia
- Lanco Infratech Ltd - India
- Vedanta Resources Plc - India
- Bhatia International Limited - India
- Wilmar Investment Holdings
- Karbindo Abesyapradhi - Indoneisa
- Bukit Makmur.PT - Indonesia
- Alfred C Toepfer International GmbH - Germany
- Parry Sugars Refinery, India
- Meralco Power Generation, Philippines
- Tata Chemicals Ltd - India
- Toyota Tsusho Corporation, Japan
- Bharathi Cement Corporation - India
- GN Power Mariveles Coal Plant, Philippines
- SMG Consultants - Indonesia
- Coal and Oil Company - UAE
- Dalmia Cement Bharat India
- Semirara Mining Corp, Philippines
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Bahari Cakrawala Sebuku - Indonesia
- Marubeni Corporation - India
- Sindya Power Generating Company Private Ltd
- Eastern Coal Council - USA
- Heidelberg Cement - Germany
- Directorate Of Revenue Intelligence - India
- Global Coal Blending Company Limited - Australia
- Straits Asia Resources Limited - Singapore
- India Bulls Power Limited - India
- Chettinad Cement Corporation Ltd - India
- Singapore Mercantile Exchange
- PetroVietnam Power Coal Import and Supply Company
- Globalindo Alam Lestari - Indonesia
- Parliament of New Zealand
- Romanian Commodities Exchange
- Therma Luzon, Inc, Philippines
- Planning Commission, India
- Manunggal Multi Energi - Indonesia
- Timah Investasi Mineral - Indoneisa
- Georgia Ports Authority, United States
- Merrill Lynch Commodities Europe
- Riau Bara Harum - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Orica Australia Pty. Ltd.
- Price Waterhouse Coopers - Russia
- Deloitte Consulting - India
- Kalimantan Lumbung Energi - Indonesia
- IHS Mccloskey Coal Group - USA
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