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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, 30 September 09
INDIA CEMENTS SET TO PRODUCE POWER; EYES COAL MINE IN INDONESIA
Financial Express reported that, Tamil Nadu-based India Cements Ltd (ICL) has firmed up plans to produce power to meet its current and future requir ...
Wednesday, 30 September 09
COKING COAL PRICES MAY TOUCH $200/TN IN 2010-11
Business Standard reported that, Driven by surge in imports of coking coal by China, growth in Japanese steel output and signs of recovery in the In ...
Wednesday, 30 September 09
PURNOMO BIDS 'GOODBYE' TO ENERGY MINISTRY
The Jakarta globe reported that, In what could be construed as a resignation speech from a government official — but perhaps wasn’t &mda ...
Tuesday, 29 September 09
MINING AND ENERGY DAY 2009
The Minister of Energy and Mineral Resources, Purnomo Yusgiantoro led the ceremony marking 2009 Mining and Energy Day celebrations, held at the Depa ...
Tuesday, 29 September 09
BUKIT ASAM REDUCES ITS SALES TARGET
Tempo Interactive reported that, PT Tambang Batubara Bukit Asam Tbk has decided to reduce its sales target this year from 14.5 million tons of coal ...
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- Manunggal Multi Energi - Indonesia
- Sindya Power Generating Company Private Ltd
- European Bulk Services B.V. - Netherlands
- Ministry of Mines - Canada
- Singapore Mercantile Exchange
- Maheswari Brothers Coal Limited - India
- Toyota Tsusho Corporation, Japan
- Ind-Barath Power Infra Limited - India
- Directorate Of Revenue Intelligence - India
- Gujarat Mineral Development Corp Ltd - India
- Siam City Cement - Thailand
- Renaissance Capital - South Africa
- Riau Bara Harum - Indonesia
- Africa Commodities Group - South Africa
- Mercator Lines Limited - India
- Sree Jayajothi Cements Limited - India
- Kohat Cement Company Ltd. - Pakistan
- The University of Queensland
- Simpson Spence & Young - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Parliament of New Zealand
- Thiess Contractors Indonesia
- Pendopo Energi Batubara - Indonesia
- Standard Chartered Bank - UAE
- PowerSource Philippines DevCo
- Bukit Makmur.PT - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- PTC India Limited - India
- Parry Sugars Refinery, India
- Tata Chemicals Ltd - India
- Deloitte Consulting - India
- Edison Trading Spa - Italy
- Mintek Dendrill Indonesia
- Anglo American - United Kingdom
- Krishnapatnam Port Company Ltd. - India
- Rio Tinto Coal - Australia
- GN Power Mariveles Coal Plant, Philippines
- Malabar Cements Ltd - India
- Carbofer General Trading SA - India
- Price Waterhouse Coopers - Russia
- Rashtriya Ispat Nigam Limited - India
- Timah Investasi Mineral - Indoneisa
- Romanian Commodities Exchange
- Cement Manufacturers Association - India
- Karaikal Port Pvt Ltd - India
- CNBM International Corporation - China
- Central Electricity Authority - India
- Energy Development Corp, Philippines
- Meenaskhi Energy Private Limited - India
- Indika Energy - Indonesia
- Sojitz Corporation - Japan
- Barasentosa Lestari - Indonesia
- IHS Mccloskey Coal Group - USA
- Sical Logistics Limited - India
- Savvy Resources Ltd - HongKong
- Ambuja Cements Ltd - India
- Bahari Cakrawala Sebuku - Indonesia
- ASAPP Information Group - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Port Waratah Coal Services - Australia
- Eastern Energy - Thailand
- Thai Mozambique Logistica
- Sakthi Sugars Limited - India
- New Zealand Coal & Carbon
- Agrawal Coal Company - India
- Bharathi Cement Corporation - India
- SMC Global Power, Philippines
- Vizag Seaport Private Limited - India
- IEA Clean Coal Centre - UK
- Power Finance Corporation Ltd., India
- Jindal Steel & Power Ltd - India
- Ceylon Electricity Board - Sri Lanka
- Semirara Mining Corp, Philippines
- Altura Mining Limited, Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Aditya Birla Group - India
- Global Coal Blending Company Limited - Australia
- SN Aboitiz Power Inc, Philippines
- Lanco Infratech Ltd - India
- Kalimantan Lumbung Energi - Indonesia
- Kapuas Tunggal Persada - Indonesia
- TeaM Sual Corporation - Philippines
- Wilmar Investment Holdings
- Bhoruka Overseas - Indonesia
- Coal and Oil Company - UAE
- Madhucon Powers Ltd - India
- Wood Mackenzie - Singapore
- Pipit Mutiara Jaya. PT, Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- McConnell Dowell - Australia
- Metalloyd Limited - United Kingdom
- Jaiprakash Power Ventures ltd
- Videocon Industries ltd - India
- Latin American Coal - Colombia
- Bangladesh Power Developement Board
- Iligan Light & Power Inc, Philippines
- The State Trading Corporation of India Ltd
- Bhatia International Limited - India
- Aboitiz Power Corporation - Philippines
- Bukit Baiduri Energy - Indonesia
- Tamil Nadu electricity Board
- Therma Luzon, Inc, Philippines
- Vedanta Resources Plc - India
- Georgia Ports Authority, United States
- Chamber of Mines of South Africa
- Goldman Sachs - Singapore
- Mjunction Services Limited - India
- Meralco Power Generation, Philippines
- Bulk Trading Sa - Switzerland
- Global Business Power Corporation, Philippines
- Merrill Lynch Commodities Europe
- India Bulls Power Limited - India
- London Commodity Brokers - England
- Electricity Generating Authority of Thailand
- CIMB Investment Bank - Malaysia
- Australian Coal Association
- Mercuria Energy - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Posco Energy - South Korea
- Larsen & Toubro Limited - India
- South Luzon Thermal Energy Corporation
- Independent Power Producers Association of India
- Interocean Group of Companies - India
- Intertek Mineral Services - Indonesia
- Gujarat Sidhee Cement - India
- Central Java Power - Indonesia
- Alfred C Toepfer International GmbH - Germany
- Ministry of Finance - Indonesia
- Kepco SPC Power Corporation, Philippines
- Planning Commission, India
- Commonwealth Bank - Australia
- Bukit Asam (Persero) Tbk - Indonesia
- International Coal Ventures Pvt Ltd - India
- Bhushan Steel Limited - India
- Gujarat Electricity Regulatory Commission - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- San Jose City I Power Corp, Philippines
- PetroVietnam Power Coal Import and Supply Company
- Neyveli Lignite Corporation Ltd, - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- GAC Shipping (India) Pvt Ltd
- Indogreen Group - Indonesia
- Indonesian Coal Mining Association
- TNB Fuel Sdn Bhd - Malaysia
- Petrochimia International Co. Ltd.- Taiwan
- Attock Cement Pakistan Limited
- Uttam Galva Steels Limited - India
- Coalindo Energy - Indonesia
- Globalindo Alam Lestari - Indonesia
- Makarim & Taira - Indonesia
- White Energy Company Limited
- Chettinad Cement Corporation Ltd - India
- LBH Netherlands Bv - Netherlands
- Petron Corporation, Philippines
- Bank of Tokyo Mitsubishi UFJ Ltd
- SMG Consultants - Indonesia
- Cigading International Bulk Terminal - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Baramulti Group, Indonesia
- VISA Power Limited - India
- PNOC Exploration Corporation - Philippines
- Xindia Steels Limited - India
- Formosa Plastics Group - Taiwan
- Heidelberg Cement - Germany
- Trasteel International SA, Italy
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Eastern Coal Council - USA
- Dalmia Cement Bharat India
- Ministry of Transport, Egypt
- Indian Oil Corporation Limited
- Jorong Barutama Greston.PT - Indonesia
- Oldendorff Carriers - Singapore
- Samtan Co., Ltd - South Korea
- Borneo Indobara - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- ICICI Bank Limited - India
- Minerals Council of Australia
- Banpu Public Company Limited - Thailand
- Global Green Power PLC Corporation, Philippines
- Bayan Resources Tbk. - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Salva Resources Pvt Ltd - India
- Kideco Jaya Agung - Indonesia
- GMR Energy Limited - India
- Australian Commodity Traders Exchange
- Star Paper Mills Limited - India
- Electricity Authority, New Zealand
- OPG Power Generation Pvt Ltd - India
- GVK Power & Infra Limited - India
- Orica Australia Pty. Ltd.
- Binh Thuan Hamico - Vietnam
- Indo Tambangraya Megah - Indonesia
- Sinarmas Energy and Mining - Indonesia
- Coastal Gujarat Power Limited - India
- Straits Asia Resources Limited - Singapore
- Sarangani Energy Corporation, Philippines
- Directorate General of MIneral and Coal - Indonesia
- Orica Mining Services - Indonesia
- Marubeni Corporation - India
- Kaltim Prima Coal - Indonesia
- The Treasury - Australian Government
- Billiton Holdings Pty Ltd - Australia
- Grasim Industreis Ltd - India
- Karbindo Abesyapradhi - Indoneisa
- Siam City Cement PLC, Thailand
- Essar Steel Hazira Ltd - India
- Antam Resourcindo - Indonesia
- Kartika Selabumi Mining - Indonesia
- Kumho Petrochemical, South Korea
- AsiaOL BioFuels Corp., Philippines
- Miang Besar Coal Terminal - Indonesia
- Medco Energi Mining Internasional
- Indian Energy Exchange, India
- MS Steel International - UAE
- Energy Link Ltd, New Zealand
- Kobexindo Tractors - Indoneisa
- Economic Council, Georgia
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