Bumi cancels plan to issue MTNs<\/p>\n
JAKARTA: Publicly-listed mining company PT Bumi Resources has
\ncanceled a plan to issue medium term notes (MTNs) worth US$56
\nmillion to finance its recent acquisition of PT Kaltim Prima Coal
\n(KPC), the country's largest coal producer.<\/p>\n
In a letter to the Jakarta Stock Exchange late on Thursday,
\nBumi's finance director Eddie J. Soebari said that financial
\nservice company Wolf Mountain Mining Investment Ltd. had agreed
\nto help Bumi in providing the $56 million.<\/p>\n
He explained that the loans provided by Wolf Mountain would
\ncarry an interest rate of 18 percent per year, maturing within a
\nfive year period.<\/p>\n
Bumi has recently completed the acquisition of KPC from Anglo-
\nAmerican energy titan BP Plc. and Anglo-Australian mining giant
\nRio Tinto for around $500 million. The company paid a down
\npayment of $40 million to BP and Rio Tinto in July.<\/p>\n
Bumi had also received US$404.5 million in loans from
\ninternational lenders.<\/p>\n
The company had initially planned to finance the remaining
\nfunding needs through the issuance of MTNs. -- JP<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/bumi-cancels-plan-to-issue-mtns-1447893297",
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"sponsor": "Okusi Associates",
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