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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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Saturday, 12 September 09
$1.5B KALIMANTAN COAL RAIL TENDER EXPECTED BY YEAR-END
The Jakarta Globe reported that, In the second announcement on major coal-railway projects in as many days, Central Kalimantan’s top official ...
Friday, 11 September 09
INDONESIA COAL-PRICES AT $66, SUPPLIERS OFFER AT BARGAIN PRICES
Some Indonesian producers were rushing to sell coal at bargain prices to ease excess stocks and catch shipments before the Muslim Eid Al-Fitr festiv ...
Friday, 11 September 09
ALPHA NATURAL EXPECTS HIGHER MET, STEAM COAL PRICES IN 2010
Mining Weekly reported that, There are encouraging signs that metallurgical coal demand in most key global markets is either returning or poised to ...
Friday, 11 September 09
POWER SECTOR'S DEPENDENCE ON COAL TO CONTINUE
The power sector will continue to be largely dependant on coal-based thermal power plants to meet its energy needs for the next 15-20 years, Power S ...
Friday, 11 September 09
L&T EYES AUSSIE COAL MINE
Commodity Online reported that, Larsen and Toubro is in talks to buy a thermal coal mine in Australia for about $300 million. Thermal coal is used f ...
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- Salva Resources Pvt Ltd - India
- Merrill Lynch Commodities Europe
- Gujarat Mineral Development Corp Ltd - India
- Sakthi Sugars Limited - India
- Manunggal Multi Energi - Indonesia
- Mercator Lines Limited - India
- Eastern Coal Council - USA
- Bhatia International Limited - India
- Posco Energy - South Korea
- CNBM International Corporation - China
- Samtan Co., Ltd - South Korea
- Therma Luzon, Inc, Philippines
- Banpu Public Company Limited - Thailand
- Indian Oil Corporation Limited
- Pendopo Energi Batubara - Indonesia
- Agrawal Coal Company - India
- Rashtriya Ispat Nigam Limited - India
- Central Electricity Authority - India
- Vizag Seaport Private Limited - India
- Sree Jayajothi Cements Limited - India
- Toyota Tsusho Corporation, Japan
- Heidelberg Cement - Germany
- Coalindo Energy - Indonesia
- Central Java Power - Indonesia
- Indian Energy Exchange, India
- Wilmar Investment Holdings
- Kaltim Prima Coal - Indonesia
- Port Waratah Coal Services - Australia
- Vedanta Resources Plc - India
- Orica Mining Services - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Malabar Cements Ltd - India
- Bharathi Cement Corporation - India
- Carbofer General Trading SA - India
- Renaissance Capital - South Africa
- Parry Sugars Refinery, India
- Dalmia Cement Bharat India
- Petron Corporation, Philippines
- International Coal Ventures Pvt Ltd - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Kideco Jaya Agung - Indonesia
- Mercuria Energy - Indonesia
- Leighton Contractors Pty Ltd - Australia
- PTC India Limited - India
- Australian Coal Association
- Bahari Cakrawala Sebuku - Indonesia
- Deloitte Consulting - India
- IHS Mccloskey Coal Group - USA
- Grasim Industreis Ltd - India
- Gujarat Sidhee Cement - India
- LBH Netherlands Bv - Netherlands
- Siam City Cement - Thailand
- The University of Queensland
- Mintek Dendrill Indonesia
- TeaM Sual Corporation - Philippines
- Ministry of Finance - Indonesia
- PowerSource Philippines DevCo
- London Commodity Brokers - England
- Planning Commission, India
- Krishnapatnam Port Company Ltd. - India
- Kalimantan Lumbung Energi - Indonesia
- Singapore Mercantile Exchange
- Cement Manufacturers Association - India
- Indika Energy - Indonesia
- Antam Resourcindo - Indonesia
- Bayan Resources Tbk. - Indonesia
- Edison Trading Spa - Italy
- Marubeni Corporation - India
- Baramulti Group, Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Global Coal Blending Company Limited - Australia
- Meenaskhi Energy Private Limited - India
- Jaiprakash Power Ventures ltd
- Essar Steel Hazira Ltd - India
- Larsen & Toubro Limited - India
- Miang Besar Coal Terminal - Indonesia
- Coal and Oil Company - UAE
- Meralco Power Generation, Philippines
- Tamil Nadu electricity Board
- Neyveli Lignite Corporation Ltd, - India
- Formosa Plastics Group - Taiwan
- Global Green Power PLC Corporation, Philippines
- Ceylon Electricity Board - Sri Lanka
- Coastal Gujarat Power Limited - India
- Videocon Industries ltd - India
- ICICI Bank Limited - India
- OPG Power Generation Pvt Ltd - India
- Directorate Of Revenue Intelligence - India
- Intertek Mineral Services - Indonesia
- Goldman Sachs - Singapore
- Bhushan Steel Limited - India
- Power Finance Corporation Ltd., India
- Sinarmas Energy and Mining - Indonesia
- Attock Cement Pakistan Limited
- Tata Chemicals Ltd - India
- Binh Thuan Hamico - Vietnam
- Independent Power Producers Association of India
- Aditya Birla Group - India
- Interocean Group of Companies - India
- Iligan Light & Power Inc, Philippines
- Indonesian Coal Mining Association
- White Energy Company Limited
- Global Business Power Corporation, Philippines
- Jorong Barutama Greston.PT - Indonesia
- Eastern Energy - Thailand
- Africa Commodities Group - South Africa
- SN Aboitiz Power Inc, Philippines
- Barasentosa Lestari - Indonesia
- Kartika Selabumi Mining - Indonesia
- Georgia Ports Authority, United States
- Sindya Power Generating Company Private Ltd
- Asmin Koalindo Tuhup - Indonesia
- Straits Asia Resources Limited - Singapore
- Cigading International Bulk Terminal - Indonesia
- Ind-Barath Power Infra Limited - India
- GN Power Mariveles Coal Plant, Philippines
- Maheswari Brothers Coal Limited - India
- MS Steel International - UAE
- Lanco Infratech Ltd - India
- Latin American Coal - Colombia
- Semirara Mining Corp, Philippines
- PetroVietnam Power Coal Import and Supply Company
- Orica Australia Pty. Ltd.
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Timah Investasi Mineral - Indoneisa
- Energy Development Corp, Philippines
- Kohat Cement Company Ltd. - Pakistan
- Sojitz Corporation - Japan
- Kumho Petrochemical, South Korea
- Kepco SPC Power Corporation, Philippines
- Gujarat Electricity Regulatory Commission - India
- Kobexindo Tractors - Indoneisa
- Billiton Holdings Pty Ltd - Australia
- Kapuas Tunggal Persada - Indonesia
- Globalindo Alam Lestari - Indonesia
- Ministry of Mines - Canada
- Bukit Asam (Persero) Tbk - Indonesia
- Ministry of Transport, Egypt
- Medco Energi Mining Internasional
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- PNOC Exploration Corporation - Philippines
- Indogreen Group - Indonesia
- Bulk Trading Sa - Switzerland
- Thiess Contractors Indonesia
- VISA Power Limited - India
- San Jose City I Power Corp, Philippines
- Parliament of New Zealand
- Energy Link Ltd, New Zealand
- Metalloyd Limited - United Kingdom
- Simpson Spence & Young - Indonesia
- Electricity Generating Authority of Thailand
- Indo Tambangraya Megah - Indonesia
- GAC Shipping (India) Pvt Ltd
- Minerals Council of Australia
- Bhoruka Overseas - Indonesia
- Bukit Baiduri Energy - Indonesia
- Electricity Authority, New Zealand
- Australian Commodity Traders Exchange
- Xindia Steels Limited - India
- Thai Mozambique Logistica
- Price Waterhouse Coopers - Russia
- SMG Consultants - Indonesia
- Savvy Resources Ltd - HongKong
- New Zealand Coal & Carbon
- Standard Chartered Bank - UAE
- Uttam Galva Steels Limited - India
- The Treasury - Australian Government
- CIMB Investment Bank - Malaysia
- Karaikal Port Pvt Ltd - India
- GVK Power & Infra Limited - India
- ASAPP Information Group - India
- Chamber of Mines of South Africa
- Ambuja Cements Ltd - India
- Semirara Mining and Power Corporation, Philippines
- Maharashtra Electricity Regulatory Commission - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Jindal Steel & Power Ltd - India
- SMC Global Power, Philippines
- Oldendorff Carriers - Singapore
- Rio Tinto Coal - Australia
- IEA Clean Coal Centre - UK
- Riau Bara Harum - Indonesia
- Alfred C Toepfer International GmbH - Germany
- Wood Mackenzie - Singapore
- Siam City Cement PLC, Thailand
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Altura Mining Limited, Indonesia
- Romanian Commodities Exchange
- Offshore Bulk Terminal Pte Ltd, Singapore
- Commonwealth Bank - Australia
- India Bulls Power Limited - India
- Holcim Trading Pte Ltd - Singapore
- TNB Fuel Sdn Bhd - Malaysia
- Sical Logistics Limited - India
- GMR Energy Limited - India
- Petrochimia International Co. Ltd.- Taiwan
- The State Trading Corporation of India Ltd
- Bangladesh Power Developement Board
- Directorate General of MIneral and Coal - Indonesia
- Borneo Indobara - Indonesia
- Chettinad Cement Corporation Ltd - India
- Madhucon Powers Ltd - India
- Makarim & Taira - Indonesia
- Anglo American - United Kingdom
- Star Paper Mills Limited - India
- South Luzon Thermal Energy Corporation
- Karbindo Abesyapradhi - Indoneisa
- Mjunction Services Limited - India
- Bukit Makmur.PT - Indonesia
- Aboitiz Power Corporation - Philippines
- Trasteel International SA, Italy
- Economic Council, Georgia
- Vijayanagar Sugar Pvt Ltd - India
- McConnell Dowell - Australia
- AsiaOL BioFuels Corp., Philippines
- Sarangani Energy Corporation, Philippines
- European Bulk Services B.V. - Netherlands
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