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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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Monday, 28 September 09
INDONESIA UNLIKELY TO PASS NEW MINING RULES IN 2009
Reuters reported that, Indonesia is unlikely to complete final regulations attached to a new mining and coal law this year, an official said on Mond ...
Monday, 28 September 09
TATA POWER SCOUTS FOR COAL BLOCKS ABROAD
Business Standard reported that, private power producer Tata Power is scouting for coal mines abroad, including Australia and Mozambique, to meet de ...
Saturday, 26 September 09
THE INDIA / FAR EAST SEEMS WILL BE FIRM NEXT WEEK - VISTAAR
COALspot.com (Singapore): The dry bulk market was soft this week and the BDI dropped by almost 7 pct to 2,183 points. The cape size index dropped by ...
Saturday, 26 September 09
GSECL PLANS TO PROCURE 15 LAKH (1.5 MILLION) MT OF IMPORTED COAL
Business Standard reported that, State-run power generation company, Gujarat State Electricity Corporation Ltd (GSECL) intends to procure 15 lakh (1 ...
Saturday, 26 September 09
SAIL TO SET UP TWO SLAG-BASED CEMENT MANUFACTURING UNITS
Rediff Business reported that, Government-owned Steel Authority of India Ltd, the country's largest steel producer, is looking to set up two greenf ...
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- Samtan Co., Ltd - South Korea
- Bank of Tokyo Mitsubishi UFJ Ltd
- Eastern Energy - Thailand
- Africa Commodities Group - South Africa
- PTC India Limited - India
- Bhushan Steel Limited - India
- Sakthi Sugars Limited - India
- Timah Investasi Mineral - Indoneisa
- Commonwealth Bank - Australia
- CIMB Investment Bank - Malaysia
- Australian Coal Association
- Mercuria Energy - Indonesia
- Sojitz Corporation - Japan
- The University of Queensland
- Meralco Power Generation, Philippines
- Sical Logistics Limited - India
- Economic Council, Georgia
- Orica Mining Services - Indonesia
- Parry Sugars Refinery, India
- Romanian Commodities Exchange
- Heidelberg Cement - Germany
- Ministry of Transport, Egypt
- Global Green Power PLC Corporation, Philippines
- MS Steel International - UAE
- IEA Clean Coal Centre - UK
- Kaltim Prima Coal - Indonesia
- VISA Power Limited - India
- Energy Development Corp, Philippines
- Semirara Mining and Power Corporation, Philippines
- Rashtriya Ispat Nigam Limited - India
- Indo Tambangraya Megah - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Uttam Galva Steels Limited - India
- India Bulls Power Limited - India
- Ind-Barath Power Infra Limited - India
- Sree Jayajothi Cements Limited - India
- Bukit Makmur.PT - Indonesia
- Formosa Plastics Group - Taiwan
- Holcim Trading Pte Ltd - Singapore
- Jaiprakash Power Ventures ltd
- Global Business Power Corporation, Philippines
- South Luzon Thermal Energy Corporation
- Jindal Steel & Power Ltd - India
- Larsen & Toubro Limited - India
- Oldendorff Carriers - Singapore
- GAC Shipping (India) Pvt Ltd
- Directorate Of Revenue Intelligence - India
- Savvy Resources Ltd - HongKong
- Sinarmas Energy and Mining - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Intertek Mineral Services - Indonesia
- Georgia Ports Authority, United States
- IHS Mccloskey Coal Group - USA
- Standard Chartered Bank - UAE
- GN Power Mariveles Coal Plant, Philippines
- Baramulti Group, Indonesia
- Maheswari Brothers Coal Limited - India
- Manunggal Multi Energi - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Kideco Jaya Agung - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Bhoruka Overseas - Indonesia
- Iligan Light & Power Inc, Philippines
- SMC Global Power, Philippines
- Straits Asia Resources Limited - Singapore
- GVK Power & Infra Limited - India
- Semirara Mining Corp, Philippines
- Kohat Cement Company Ltd. - Pakistan
- Riau Bara Harum - Indonesia
- Ministry of Finance - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Global Coal Blending Company Limited - Australia
- Edison Trading Spa - Italy
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Goldman Sachs - Singapore
- Maharashtra Electricity Regulatory Commission - India
- Bangladesh Power Developement Board
- Pendopo Energi Batubara - Indonesia
- Wood Mackenzie - Singapore
- Offshore Bulk Terminal Pte Ltd, Singapore
- Kumho Petrochemical, South Korea
- Pipit Mutiara Jaya. PT, Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Merrill Lynch Commodities Europe
- Rio Tinto Coal - Australia
- McConnell Dowell - Australia
- Sarangani Energy Corporation, Philippines
- Gujarat Sidhee Cement - India
- Binh Thuan Hamico - Vietnam
- Leighton Contractors Pty Ltd - Australia
- Neyveli Lignite Corporation Ltd, - India
- LBH Netherlands Bv - Netherlands
- The Treasury - Australian Government
- Electricity Generating Authority of Thailand
- Malabar Cements Ltd - India
- Aditya Birla Group - India
- Siam City Cement PLC, Thailand
- Aboitiz Power Corporation - Philippines
- Coalindo Energy - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Ambuja Cements Ltd - India
- PNOC Exploration Corporation - Philippines
- OPG Power Generation Pvt Ltd - India
- Kartika Selabumi Mining - Indonesia
- Carbofer General Trading SA - India
- Indian Oil Corporation Limited
- Chettinad Cement Corporation Ltd - India
- Price Waterhouse Coopers - Russia
- Thai Mozambique Logistica
- Therma Luzon, Inc, Philippines
- Tata Chemicals Ltd - India
- Borneo Indobara - Indonesia
- Tamil Nadu electricity Board
- Antam Resourcindo - Indonesia
- Attock Cement Pakistan Limited
- Krishnapatnam Port Company Ltd. - India
- Kobexindo Tractors - Indoneisa
- Meenaskhi Energy Private Limited - India
- International Coal Ventures Pvt Ltd - India
- The State Trading Corporation of India Ltd
- Lanco Infratech Ltd - India
- Ceylon Electricity Board - Sri Lanka
- Siam City Cement - Thailand
- GMR Energy Limited - India
- Sindya Power Generating Company Private Ltd
- Madhucon Powers Ltd - India
- Cement Manufacturers Association - India
- Anglo American - United Kingdom
- Parliament of New Zealand
- Minerals Council of Australia
- Coastal Gujarat Power Limited - India
- Globalindo Alam Lestari - Indonesia
- Planning Commission, India
- Bulk Trading Sa - Switzerland
- Indonesian Coal Mining Association
- Orica Australia Pty. Ltd.
- Salva Resources Pvt Ltd - India
- Indika Energy - Indonesia
- Trasteel International SA, Italy
- Medco Energi Mining Internasional
- Altura Mining Limited, Indonesia
- Petron Corporation, Philippines
- Mintek Dendrill Indonesia
- Posco Energy - South Korea
- Miang Besar Coal Terminal - Indonesia
- Grasim Industreis Ltd - India
- Toyota Tsusho Corporation, Japan
- Karaikal Port Pvt Ltd - India
- Singapore Mercantile Exchange
- Cigading International Bulk Terminal - Indonesia
- Marubeni Corporation - India
- SMG Consultants - Indonesia
- ICICI Bank Limited - India
- Power Finance Corporation Ltd., India
- PowerSource Philippines DevCo
- Australian Commodity Traders Exchange
- Bayan Resources Tbk. - Indonesia
- Renaissance Capital - South Africa
- Energy Link Ltd, New Zealand
- Central Java Power - Indonesia
- ASAPP Information Group - India
- London Commodity Brokers - England
- Jorong Barutama Greston.PT - Indonesia
- Electricity Authority, New Zealand
- Metalloyd Limited - United Kingdom
- Independent Power Producers Association of India
- Banpu Public Company Limited - Thailand
- Port Waratah Coal Services - Australia
- Indogreen Group - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Gujarat Electricity Regulatory Commission - India
- Indian Energy Exchange, India
- Bhatia International Limited - India
- Simpson Spence & Young - Indonesia
- Barasentosa Lestari - Indonesia
- Vizag Seaport Private Limited - India
- Central Electricity Authority - India
- Wilmar Investment Holdings
- European Bulk Services B.V. - Netherlands
- Kapuas Tunggal Persada - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Bukit Baiduri Energy - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Makarim & Taira - Indonesia
- Dalmia Cement Bharat India
- Mjunction Services Limited - India
- Bharathi Cement Corporation - India
- Karbindo Abesyapradhi - Indoneisa
- SN Aboitiz Power Inc, Philippines
- Vedanta Resources Plc - India
- Agrawal Coal Company - India
- Latin American Coal - Colombia
- Xindia Steels Limited - India
- Eastern Coal Council - USA
- Essar Steel Hazira Ltd - India
- TeaM Sual Corporation - Philippines
- Ministry of Mines - Canada
- Interocean Group of Companies - India
- CNBM International Corporation - China
- Coal and Oil Company - UAE
- Thiess Contractors Indonesia
- AsiaOL BioFuels Corp., Philippines
- Kalimantan Lumbung Energi - Indonesia
- San Jose City I Power Corp, Philippines
- Kepco SPC Power Corporation, Philippines
- Asmin Koalindo Tuhup - Indonesia
- Videocon Industries ltd - India
- White Energy Company Limited
- PetroVietnam Power Coal Import and Supply Company
- Mercator Lines Limited - India
- Bahari Cakrawala Sebuku - Indonesia
- New Zealand Coal & Carbon
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Chamber of Mines of South Africa
- Deloitte Consulting - India
- Alfred C Toepfer International GmbH - Germany
- Star Paper Mills Limited - India
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