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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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Tuesday, 06 October 09
COAL INDIA AIMS TO BUY MINE ABROAD BY MARCH
*Coal India to issue its first coal import tender by Nov
*ArcelorMittal, 9 others in race to develop abandoned mines
*52 firms keen to partner coa ...
Monday, 05 October 09
SOUTH AFRICAN COAL RISES ON INDIAN BUYING, DOMESTIC DEMAND
Bloomberg reported that, Prices for coal shipped from South Africa’s Richards Bay, site of the world’s largest export terminal for the f ...
Monday, 05 October 09
BANPU EYES INCREASE IN COAL OUTPUT
The Nation reported that, Banpu plans to boost its coal output to 23 million tonnes next year once production begins at the East Block of its Indomi ...
Monday, 05 October 09
COAL TRADING C&O TO INVEST $100 M NEXT YEAR
The Jakarta Post reported that, Coal and Oil (C&0) Group of India plans to invest up to US$100 million in Indonesia next year to acquire coal mi ...
Sunday, 04 October 09
INDONESIAN COAL EXCHANGE FOR PRICE BENCHMARKING IN OFFING
Reuters cited Mr Bob Kamandanu chairman of the Indonesian Coal Producers Association as saying that Indonesia plans to set up a coal exchange to cre ...
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- Kalimantan Lumbung Energi - Indonesia
- Sojitz Corporation - Japan
- TeaM Sual Corporation - Philippines
- Chettinad Cement Corporation Ltd - India
- Bhoruka Overseas - Indonesia
- Karaikal Port Pvt Ltd - India
- Ministry of Finance - Indonesia
- Xindia Steels Limited - India
- Larsen & Toubro Limited - India
- Central Electricity Authority - India
- Ind-Barath Power Infra Limited - India
- Dalmia Cement Bharat India
- Bahari Cakrawala Sebuku - Indonesia
- Kumho Petrochemical, South Korea
- Gujarat Sidhee Cement - India
- Binh Thuan Hamico - Vietnam
- Independent Power Producers Association of India
- Electricity Authority, New Zealand
- London Commodity Brokers - England
- Metalloyd Limited - United Kingdom
- Altura Mining Limited, Indonesia
- Coal and Oil Company - UAE
- Coastal Gujarat Power Limited - India
- Africa Commodities Group - South Africa
- Holcim Trading Pte Ltd - Singapore
- Commonwealth Bank - Australia
- Economic Council, Georgia
- Directorate Of Revenue Intelligence - India
- Edison Trading Spa - Italy
- Petrochimia International Co. Ltd.- Taiwan
- Price Waterhouse Coopers - Russia
- PetroVietnam Power Coal Import and Supply Company
- Minerals Council of Australia
- Iligan Light & Power Inc, Philippines
- OPG Power Generation Pvt Ltd - India
- Toyota Tsusho Corporation, Japan
- Bhushan Steel Limited - India
- Tamil Nadu electricity Board
- SN Aboitiz Power Inc, Philippines
- Siam City Cement PLC, Thailand
- Agrawal Coal Company - India
- PTC India Limited - India
- Jaiprakash Power Ventures ltd
- CNBM International Corporation - China
- Sarangani Energy Corporation, Philippines
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Thiess Contractors Indonesia
- Cement Manufacturers Association - India
- Globalindo Alam Lestari - Indonesia
- Goldman Sachs - Singapore
- Malabar Cements Ltd - India
- Merrill Lynch Commodities Europe
- Thai Mozambique Logistica
- Eastern Coal Council - USA
- Straits Asia Resources Limited - Singapore
- Renaissance Capital - South Africa
- Posco Energy - South Korea
- Neyveli Lignite Corporation Ltd, - India
- Videocon Industries ltd - India
- Mercator Lines Limited - India
- Pendopo Energi Batubara - Indonesia
- Parliament of New Zealand
- Jindal Steel & Power Ltd - India
- Global Coal Blending Company Limited - Australia
- Bangladesh Power Developement Board
- Bharathi Cement Corporation - India
- Kaltim Prima Coal - Indonesia
- PowerSource Philippines DevCo
- Banpu Public Company Limited - Thailand
- Uttam Galva Steels Limited - India
- Australian Commodity Traders Exchange
- GAC Shipping (India) Pvt Ltd
- Essar Steel Hazira Ltd - India
- Barasentosa Lestari - Indonesia
- Formosa Plastics Group - Taiwan
- Energy Link Ltd, New Zealand
- India Bulls Power Limited - India
- Star Paper Mills Limited - India
- Electricity Generating Authority of Thailand
- Offshore Bulk Terminal Pte Ltd, Singapore
- Siam City Cement - Thailand
- New Zealand Coal & Carbon
- Kapuas Tunggal Persada - Indonesia
- The Treasury - Australian Government
- Orica Mining Services - Indonesia
- Mercuria Energy - Indonesia
- Mjunction Services Limited - India
- Intertek Mineral Services - Indonesia
- Bukit Makmur.PT - Indonesia
- Aditya Birla Group - India
- Grasim Industreis Ltd - India
- San Jose City I Power Corp, Philippines
- Vedanta Resources Plc - India
- Semirara Mining Corp, Philippines
- IEA Clean Coal Centre - UK
- Riau Bara Harum - Indonesia
- Manunggal Multi Energi - Indonesia
- Timah Investasi Mineral - Indoneisa
- Gujarat Mineral Development Corp Ltd - India
- Ceylon Electricity Board - Sri Lanka
- Standard Chartered Bank - UAE
- Trasteel International SA, Italy
- Parry Sugars Refinery, India
- Madhucon Powers Ltd - India
- Global Green Power PLC Corporation, Philippines
- Attock Cement Pakistan Limited
- Bulk Trading Sa - Switzerland
- Semirara Mining and Power Corporation, Philippines
- Borneo Indobara - Indonesia
- Baramulti Group, Indonesia
- ICICI Bank Limited - India
- Wood Mackenzie - Singapore
- GN Power Mariveles Coal Plant, Philippines
- Ministry of Transport, Egypt
- Planning Commission, India
- Salva Resources Pvt Ltd - India
- The University of Queensland
- Marubeni Corporation - India
- SMG Consultants - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Wilmar Investment Holdings
- Simpson Spence & Young - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- SMC Global Power, Philippines
- Bukit Baiduri Energy - Indonesia
- Cigading International Bulk Terminal - Indonesia
- Ministry of Mines - Canada
- Eastern Energy - Thailand
- ASAPP Information Group - India
- Meralco Power Generation, Philippines
- Rio Tinto Coal - Australia
- Aboitiz Power Corporation - Philippines
- Kideco Jaya Agung - Indonesia
- Indian Energy Exchange, India
- McConnell Dowell - Australia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- AsiaOL BioFuels Corp., Philippines
- Meenaskhi Energy Private Limited - India
- Indika Energy - Indonesia
- LBH Netherlands Bv - Netherlands
- Oldendorff Carriers - Singapore
- Interocean Group of Companies - India
- Samtan Co., Ltd - South Korea
- PNOC Exploration Corporation - Philippines
- CIMB Investment Bank - Malaysia
- Ambuja Cements Ltd - India
- Sindya Power Generating Company Private Ltd
- Deloitte Consulting - India
- TNB Fuel Sdn Bhd - Malaysia
- Rashtriya Ispat Nigam Limited - India
- Billiton Holdings Pty Ltd - Australia
- Mintek Dendrill Indonesia
- International Coal Ventures Pvt Ltd - India
- Alfred C Toepfer International GmbH - Germany
- Bayan Resources Tbk. - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Asmin Koalindo Tuhup - Indonesia
- Sakthi Sugars Limited - India
- Sical Logistics Limited - India
- Indonesian Coal Mining Association
- Indo Tambangraya Megah - Indonesia
- Anglo American - United Kingdom
- Vizag Seaport Private Limited - India
- European Bulk Services B.V. - Netherlands
- Vijayanagar Sugar Pvt Ltd - India
- Central Java Power - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Heidelberg Cement - Germany
- Bank of Tokyo Mitsubishi UFJ Ltd
- Kartika Selabumi Mining - Indonesia
- Australian Coal Association
- Gujarat Electricity Regulatory Commission - India
- Pipit Mutiara Jaya. PT, Indonesia
- Indogreen Group - Indonesia
- Antam Resourcindo - Indonesia
- Singapore Mercantile Exchange
- Carbofer General Trading SA - India
- Krishnapatnam Port Company Ltd. - India
- White Energy Company Limited
- Therma Luzon, Inc, Philippines
- Port Waratah Coal Services - Australia
- South Luzon Thermal Energy Corporation
- Directorate General of MIneral and Coal - Indonesia
- Global Business Power Corporation, Philippines
- GMR Energy Limited - India
- Coalindo Energy - Indonesia
- Lanco Infratech Ltd - India
- Maheswari Brothers Coal Limited - India
- Power Finance Corporation Ltd., India
- Indian Oil Corporation Limited
- Kobexindo Tractors - Indoneisa
- The State Trading Corporation of India Ltd
- Sinarmas Energy and Mining - Indonesia
- Latin American Coal - Colombia
- Romanian Commodities Exchange
- VISA Power Limited - India
- Petron Corporation, Philippines
- GVK Power & Infra Limited - India
- Miang Besar Coal Terminal - Indonesia
- MS Steel International - UAE
- Energy Development Corp, Philippines
- Sree Jayajothi Cements Limited - India
- Orica Australia Pty. Ltd.
- Medco Energi Mining Internasional
- Tata Chemicals Ltd - India
- IHS Mccloskey Coal Group - USA
- Georgia Ports Authority, United States
- Makarim & Taira - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Karbindo Abesyapradhi - Indoneisa
- Bhatia International Limited - India
- Kepco SPC Power Corporation, Philippines
- Savvy Resources Ltd - HongKong
- Leighton Contractors Pty Ltd - Australia
- Kohat Cement Company Ltd. - Pakistan
- Chamber of Mines of South Africa
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