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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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Thursday, 24 September 09
S.KOREA HYUNDAI STEEL TO BUY COAL FROM SIBERIA
Reuters reported that, South Korea's Hyundai Steel said on Wednesday it will buy a maximum of 300,000 tonnes of coal per year from Siberian Anthrac ...
Thursday, 24 September 09
NO IMPORTED COAL-BASED UMPPS: TATA POWER
Will wait until policy environment becomes more favourable.
Business Standard reported that, Tata Power Company (TPC), India’s largest priv ...
Thursday, 24 September 09
BUMI RAISES $1.9 BILLION SELLING DEBT TO CHINA'S CIC
Bloomberg reported that, PT Bumi Resources, Indonesia’s biggest coal producer, said it raised $1.9 billion selling debt to China’s sover ...
Thursday, 24 September 09
MACQUARIE DOWNGRADES U.S. COAL SECTOR TO NEUTRAL
Reuters reported that, Macquarie Research downgraded the U.S. coal sector to "neutral" from "overweight" as it believes that dem ...
Thursday, 24 September 09
CHINA WILL BE IMPORTER OF COKING COAL NEXT YEAR, MCCLOSKEY SAYS
Bloomberg reported that, China, the world’s largest coal user and producer, will remain an importer of the fuel through next year, according t ...
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- Bukit Asam (Persero) Tbk - Indonesia
- Star Paper Mills Limited - India
- Metalloyd Limited - United Kingdom
- Karbindo Abesyapradhi - Indoneisa
- SMC Global Power, Philippines
- Marubeni Corporation - India
- Australian Coal Association
- Vijayanagar Sugar Pvt Ltd - India
- Holcim Trading Pte Ltd - Singapore
- Aboitiz Power Corporation - Philippines
- Indogreen Group - Indonesia
- Dalmia Cement Bharat India
- PTC India Limited - India
- Bahari Cakrawala Sebuku - Indonesia
- The State Trading Corporation of India Ltd
- Kalimantan Lumbung Energi - Indonesia
- LBH Netherlands Bv - Netherlands
- SN Aboitiz Power Inc, Philippines
- Intertek Mineral Services - Indonesia
- Indian Energy Exchange, India
- Aditya Birla Group - India
- GMR Energy Limited - India
- IHS Mccloskey Coal Group - USA
- Bhushan Steel Limited - India
- Wilmar Investment Holdings
- Toyota Tsusho Corporation, Japan
- Interocean Group of Companies - India
- Videocon Industries ltd - India
- Borneo Indobara - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Rio Tinto Coal - Australia
- Thiess Contractors Indonesia
- Siam City Cement PLC, Thailand
- Merrill Lynch Commodities Europe
- Economic Council, Georgia
- Kartika Selabumi Mining - Indonesia
- Mintek Dendrill Indonesia
- Bangladesh Power Developement Board
- Coastal Gujarat Power Limited - India
- Agrawal Coal Company - India
- Sree Jayajothi Cements Limited - India
- Alfred C Toepfer International GmbH - Germany
- Semirara Mining and Power Corporation, Philippines
- Chamber of Mines of South Africa
- South Luzon Thermal Energy Corporation
- Wood Mackenzie - Singapore
- Eastern Coal Council - USA
- Krishnapatnam Port Company Ltd. - India
- Port Waratah Coal Services - Australia
- OPG Power Generation Pvt Ltd - India
- Bhatia International Limited - India
- Global Green Power PLC Corporation, Philippines
- Binh Thuan Hamico - Vietnam
- Jindal Steel & Power Ltd - India
- Oldendorff Carriers - Singapore
- Deloitte Consulting - India
- Kumho Petrochemical, South Korea
- Electricity Generating Authority of Thailand
- Ministry of Finance - Indonesia
- Vedanta Resources Plc - India
- Gujarat Mineral Development Corp Ltd - India
- Kepco SPC Power Corporation, Philippines
- Sinarmas Energy and Mining - Indonesia
- Georgia Ports Authority, United States
- CIMB Investment Bank - Malaysia
- Orica Mining Services - Indonesia
- Karaikal Port Pvt Ltd - India
- Vizag Seaport Private Limited - India
- Maharashtra Electricity Regulatory Commission - India
- Posco Energy - South Korea
- Madhucon Powers Ltd - India
- Ceylon Electricity Board - Sri Lanka
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Ministry of Mines - Canada
- European Bulk Services B.V. - Netherlands
- Leighton Contractors Pty Ltd - Australia
- Orica Australia Pty. Ltd.
- Meralco Power Generation, Philippines
- Parry Sugars Refinery, India
- Antam Resourcindo - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- GVK Power & Infra Limited - India
- Global Business Power Corporation, Philippines
- TeaM Sual Corporation - Philippines
- Petrochimia International Co. Ltd.- Taiwan
- Uttam Galva Steels Limited - India
- Electricity Authority, New Zealand
- Gujarat Electricity Regulatory Commission - India
- Attock Cement Pakistan Limited
- Indonesian Coal Mining Association
- The University of Queensland
- Altura Mining Limited, Indonesia
- Mjunction Services Limited - India
- GAC Shipping (India) Pvt Ltd
- India Bulls Power Limited - India
- International Coal Ventures Pvt Ltd - India
- Central Electricity Authority - India
- Malabar Cements Ltd - India
- Anglo American - United Kingdom
- Australian Commodity Traders Exchange
- Ambuja Cements Ltd - India
- Indika Energy - Indonesia
- Barasentosa Lestari - Indonesia
- Grasim Industreis Ltd - India
- Rashtriya Ispat Nigam Limited - India
- Meenaskhi Energy Private Limited - India
- Ministry of Transport, Egypt
- Latin American Coal - Colombia
- Tata Chemicals Ltd - India
- Eastern Energy - Thailand
- Sojitz Corporation - Japan
- Sical Logistics Limited - India
- GN Power Mariveles Coal Plant, Philippines
- Cement Manufacturers Association - India
- Africa Commodities Group - South Africa
- Maheswari Brothers Coal Limited - India
- Heidelberg Cement - Germany
- Bharathi Cement Corporation - India
- PNOC Exploration Corporation - Philippines
- Price Waterhouse Coopers - Russia
- Pendopo Energi Batubara - Indonesia
- Singapore Mercantile Exchange
- Carbofer General Trading SA - India
- Bhoruka Overseas - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Salva Resources Pvt Ltd - India
- Bayan Resources Tbk. - Indonesia
- IEA Clean Coal Centre - UK
- London Commodity Brokers - England
- Independent Power Producers Association of India
- SMG Consultants - Indonesia
- Sakthi Sugars Limited - India
- Samtan Co., Ltd - South Korea
- Planning Commission, India
- Kaltim Prima Coal - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Commonwealth Bank - Australia
- Chettinad Cement Corporation Ltd - India
- Pipit Mutiara Jaya. PT, Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- ICICI Bank Limited - India
- Parliament of New Zealand
- Jorong Barutama Greston.PT - Indonesia
- Coal and Oil Company - UAE
- Medco Energi Mining Internasional
- Essar Steel Hazira Ltd - India
- White Energy Company Limited
- Global Coal Blending Company Limited - Australia
- Directorate Of Revenue Intelligence - India
- Mercuria Energy - Indonesia
- CNBM International Corporation - China
- Manunggal Multi Energi - Indonesia
- Kideco Jaya Agung - Indonesia
- Indian Oil Corporation Limited
- Timah Investasi Mineral - Indoneisa
- Goldman Sachs - Singapore
- Standard Chartered Bank - UAE
- Mercator Lines Limited - India
- Central Java Power - Indonesia
- New Zealand Coal & Carbon
- AsiaOL BioFuels Corp., Philippines
- Savvy Resources Ltd - HongKong
- PowerSource Philippines DevCo
- Indo Tambangraya Megah - Indonesia
- Sarangani Energy Corporation, Philippines
- Ind-Barath Power Infra Limited - India
- Minerals Council of Australia
- Bukit Baiduri Energy - Indonesia
- Baramulti Group, Indonesia
- Bulk Trading Sa - Switzerland
- Iligan Light & Power Inc, Philippines
- Riau Bara Harum - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Simpson Spence & Young - Indonesia
- Kapuas Tunggal Persada - Indonesia
- Edison Trading Spa - Italy
- Sindya Power Generating Company Private Ltd
- McConnell Dowell - Australia
- Cigading International Bulk Terminal - Indonesia
- Globalindo Alam Lestari - Indonesia
- The Treasury - Australian Government
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Gujarat Sidhee Cement - India
- Energy Development Corp, Philippines
- Therma Luzon, Inc, Philippines
- Petron Corporation, Philippines
- Kobexindo Tractors - Indoneisa
- Siam City Cement - Thailand
- Power Finance Corporation Ltd., India
- Energy Link Ltd, New Zealand
- Neyveli Lignite Corporation Ltd, - India
- Trasteel International SA, Italy
- Xindia Steels Limited - India
- Miang Besar Coal Terminal - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Billiton Holdings Pty Ltd - Australia
- Bukit Makmur.PT - Indonesia
- Semirara Mining Corp, Philippines
- Formosa Plastics Group - Taiwan
- Banpu Public Company Limited - Thailand
- Renaissance Capital - South Africa
- Jaiprakash Power Ventures ltd
- Asia Pacific Energy Resources Ventures Inc, Philippines
- VISA Power Limited - India
- Lanco Infratech Ltd - India
- ASAPP Information Group - India
- Straits Asia Resources Limited - Singapore
- San Jose City I Power Corp, Philippines
- Larsen & Toubro Limited - India
- Romanian Commodities Exchange
- MS Steel International - UAE
- Thai Mozambique Logistica
- Tamil Nadu electricity Board
- Makarim & Taira - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Coalindo Energy - Indonesia
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