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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, 19 August 09
MMTC SCRAPS CONTROVERSIAL COAL TENDER
Most of NTPC’s coal-based projects don’t have sufficient stock of coal
State-owned trading firm MMTC Ltd has scrapped its controversi ...
Wednesday, 19 August 09
THE 3RD ASIA PACIFIC COAL TRADING & INVESTMENT OUTLOOK 2009 WILL BE HELD IN CHINA IN SEPTEMBER 2009
COALspot.com (China): Due to the inversion of domestic and overseas coal price in China, China coal import increased dramatically and continuously. ...
Wednesday, 19 August 09
COAL INDIA PLANS SUBSIDIARY IN MOZAMBIQUE
Business Standard reported that, Coal India Ltd (CIL), which was awarded two exploratory coal blocks in Mozambique in March this year, has decided t ...
Tuesday, 18 August 09
INDIA PLANS 'SIMPLER' MINING LAW TO BOOST INVESTMENT
Bloomberg reported that, India aims to cut permit delays and attract overseas capital through “simpler” resource investment laws to help ...
Tuesday, 18 August 09
BANPU TO FOCUS ON CORE BUSINESS
Banpu, the country's leading energy firm, expects to conclude its four-year strategic plan next month, resulting in a strengthening of its core bus ...
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- PTC India Limited - India
- Alfred C Toepfer International GmbH - Germany
- Bahari Cakrawala Sebuku - Indonesia
- Bhatia International Limited - India
- Gujarat Mineral Development Corp Ltd - India
- Indika Energy - Indonesia
- Kaltim Prima Coal - Indonesia
- Xindia Steels Limited - India
- New Zealand Coal & Carbon
- Krishnapatnam Port Company Ltd. - India
- Port Waratah Coal Services - Australia
- Indian Oil Corporation Limited
- Bank of Tokyo Mitsubishi UFJ Ltd
- Kohat Cement Company Ltd. - Pakistan
- Neyveli Lignite Corporation Ltd, - India
- Essar Steel Hazira Ltd - India
- Latin American Coal - Colombia
- Tata Chemicals Ltd - India
- Agrawal Coal Company - India
- Parry Sugars Refinery, India
- Madhucon Powers Ltd - India
- Toyota Tsusho Corporation, Japan
- Holcim Trading Pte Ltd - Singapore
- Makarim & Taira - Indonesia
- Energy Development Corp, Philippines
- Sical Logistics Limited - India
- Semirara Mining and Power Corporation, Philippines
- Ind-Barath Power Infra Limited - India
- Aboitiz Power Corporation - Philippines
- Borneo Indobara - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Simpson Spence & Young - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Kobexindo Tractors - Indoneisa
- Metalloyd Limited - United Kingdom
- Medco Energi Mining Internasional
- Global Business Power Corporation, Philippines
- Leighton Contractors Pty Ltd - Australia
- Ministry of Mines - Canada
- Bangladesh Power Developement Board
- GAC Shipping (India) Pvt Ltd
- Salva Resources Pvt Ltd - India
- The Treasury - Australian Government
- Meenaskhi Energy Private Limited - India
- PNOC Exploration Corporation - Philippines
- Gujarat Electricity Regulatory Commission - India
- Ministry of Transport, Egypt
- Iligan Light & Power Inc, Philippines
- Indian Energy Exchange, India
- Sindya Power Generating Company Private Ltd
- Maharashtra Electricity Regulatory Commission - India
- Videocon Industries ltd - India
- Standard Chartered Bank - UAE
- Economic Council, Georgia
- Minerals Council of Australia
- Sojitz Corporation - Japan
- Oldendorff Carriers - Singapore
- Pendopo Energi Batubara - Indonesia
- The State Trading Corporation of India Ltd
- Sakthi Sugars Limited - India
- Interocean Group of Companies - India
- Planning Commission, India
- Deloitte Consulting - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Heidelberg Cement - Germany
- Coal and Oil Company - UAE
- Trasteel International SA, Italy
- Chettinad Cement Corporation Ltd - India
- SMG Consultants - Indonesia
- Ceylon Electricity Board - Sri Lanka
- Malabar Cements Ltd - India
- Electricity Generating Authority of Thailand
- Siam City Cement PLC, Thailand
- Barasentosa Lestari - Indonesia
- Coastal Gujarat Power Limited - India
- Parliament of New Zealand
- Orica Australia Pty. Ltd.
- Goldman Sachs - Singapore
- Asmin Koalindo Tuhup - Indonesia
- Mintek Dendrill Indonesia
- Indo Tambangraya Megah - Indonesia
- Rio Tinto Coal - Australia
- Straits Asia Resources Limited - Singapore
- Sree Jayajothi Cements Limited - India
- White Energy Company Limited
- Karaikal Port Pvt Ltd - India
- Maheswari Brothers Coal Limited - India
- Star Paper Mills Limited - India
- GMR Energy Limited - India
- Electricity Authority, New Zealand
- Coalindo Energy - Indonesia
- Mjunction Services Limited - India
- Indogreen Group - Indonesia
- ICICI Bank Limited - India
- Energy Link Ltd, New Zealand
- International Coal Ventures Pvt Ltd - India
- SMC Global Power, Philippines
- Carbofer General Trading SA - India
- MS Steel International - UAE
- ASAPP Information Group - India
- Savvy Resources Ltd - HongKong
- AsiaOL BioFuels Corp., Philippines
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Siam City Cement - Thailand
- Central Electricity Authority - India
- Australian Coal Association
- Kapuas Tunggal Persada - Indonesia
- Aditya Birla Group - India
- London Commodity Brokers - England
- Ministry of Finance - Indonesia
- Marubeni Corporation - India
- Africa Commodities Group - South Africa
- Uttam Galva Steels Limited - India
- Anglo American - United Kingdom
- Power Finance Corporation Ltd., India
- Edison Trading Spa - Italy
- Rashtriya Ispat Nigam Limited - India
- Kumho Petrochemical, South Korea
- Cigading International Bulk Terminal - Indonesia
- Formosa Plastics Group - Taiwan
- Meralco Power Generation, Philippines
- Karbindo Abesyapradhi - Indoneisa
- Kartika Selabumi Mining - Indonesia
- CNBM International Corporation - China
- Samtan Co., Ltd - South Korea
- Singapore Mercantile Exchange
- Binh Thuan Hamico - Vietnam
- Directorate Of Revenue Intelligence - India
- PetroVietnam Power Coal Import and Supply Company
- Globalindo Alam Lestari - Indonesia
- Renaissance Capital - South Africa
- Offshore Bulk Terminal Pte Ltd, Singapore
- Bhoruka Overseas - Indonesia
- Central Java Power - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Antam Resourcindo - Indonesia
- Price Waterhouse Coopers - Russia
- Commonwealth Bank - Australia
- Gujarat Sidhee Cement - India
- Riau Bara Harum - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Tamil Nadu electricity Board
- Kideco Jaya Agung - Indonesia
- Banpu Public Company Limited - Thailand
- Vizag Seaport Private Limited - India
- Bayan Resources Tbk. - Indonesia
- Manunggal Multi Energi - Indonesia
- Indonesian Coal Mining Association
- Mercator Lines Limited - India
- GVK Power & Infra Limited - India
- Eastern Coal Council - USA
- Sinarmas Energy and Mining - Indonesia
- Orica Mining Services - Indonesia
- Thai Mozambique Logistica
- GN Power Mariveles Coal Plant, Philippines
- Kepco SPC Power Corporation, Philippines
- Eastern Energy - Thailand
- SN Aboitiz Power Inc, Philippines
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Georgia Ports Authority, United States
- Merrill Lynch Commodities Europe
- Intertek Mineral Services - Indonesia
- Vedanta Resources Plc - India
- Bukit Baiduri Energy - Indonesia
- CIMB Investment Bank - Malaysia
- Bukit Makmur.PT - Indonesia
- The University of Queensland
- Timah Investasi Mineral - Indoneisa
- Independent Power Producers Association of India
- Australian Commodity Traders Exchange
- Global Green Power PLC Corporation, Philippines
- Jindal Steel & Power Ltd - India
- LBH Netherlands Bv - Netherlands
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- TeaM Sual Corporation - Philippines
- European Bulk Services B.V. - Netherlands
- Grasim Industreis Ltd - India
- Directorate General of MIneral and Coal - Indonesia
- OPG Power Generation Pvt Ltd - India
- Bharathi Cement Corporation - India
- Baramulti Group, Indonesia
- Wood Mackenzie - Singapore
- Miang Besar Coal Terminal - Indonesia
- VISA Power Limited - India
- Semirara Mining Corp, Philippines
- Kalimantan Lumbung Energi - Indonesia
- Wilmar Investment Holdings
- Dalmia Cement Bharat India
- IHS Mccloskey Coal Group - USA
- McConnell Dowell - Australia
- Thiess Contractors Indonesia
- Petron Corporation, Philippines
- South Luzon Thermal Energy Corporation
- Jaiprakash Power Ventures ltd
- Larsen & Toubro Limited - India
- IEA Clean Coal Centre - UK
- Altura Mining Limited, Indonesia
- Posco Energy - South Korea
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Chamber of Mines of South Africa
- Bulk Trading Sa - Switzerland
- Lanco Infratech Ltd - India
- Ambuja Cements Ltd - India
- Bukit Asam (Persero) Tbk - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Cement Manufacturers Association - India
- Bhushan Steel Limited - India
- PowerSource Philippines DevCo
- Mercuria Energy - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Therma Luzon, Inc, Philippines
- India Bulls Power Limited - India
- Attock Cement Pakistan Limited
- Romanian Commodities Exchange
- San Jose City I Power Corp, Philippines
- Global Coal Blending Company Limited - Australia
- Sarangani Energy Corporation, Philippines
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