Bumi to issue US$600m in bonds<\/p>\n
Leony Aurora, The Jakarta Post\/Jakarta<\/p>\n
Indonesia's largest coal exporter, PT Bumi Resources, plans to
\nissue US$600 million-worth of bonds later this year to refinance
\nits debts, says a top company executive.<\/p>\n
The proceeds would be used to repay the debts of Bumi
\nsubsidiaries PT Arutmin and PT Kaltim Prima Coal (KPC) to Credit
\nSuisse First Boston, United Overseas Bank and several local
\nbanks, finance director Eddie Soebari told reporters on the
\nsidelines of the Indonesian Capital Markets Seminar and Expo here
\non Friday.<\/p>\n
The interest on the debts was four percentage points higher
\nthan the three-month London Interbank Offered Rate (Libor).<\/p>\n
"We hope to get a better deal," said Eddie. Following
\nrefinancing, the company expected to cut its interest between 6
\npercent and 7 percent.<\/p>\n
One of the financial advisors assisting with the U.S. dollar-
\ndenominated bond issue is Merryl Linch.<\/p>\n
Coal miner KPC secured a $385 million loan from a syndicate of
\nbanks, including Indonesia's Bank Mandiri, led by the Malaysia
\nand Thai offices of Credit Suisse First Boston (CSFB) last year
\nto refinance its debts.<\/p>\n
KPC contributed between 70 percent and 80 percent of Bumi's
\nrevenues last year, said Eddie.<\/p>\n
He further said that Bumi's total coal production this year
\nwould grow by between 20 percent and 23 percent. Coal output was
\nestimated at 40 million tons last year.<\/p>\n
The company's output rose after it bought KPC -- which has
\nmines in East Kalimantan -- in October 2003. The acquisition of
\nKPC turned Bumi into the country's largest coal producer,
\ncontrolling more than 6 percent of thermal coal supply on the
\ninternational market.<\/p>\n
Two years prior to acquiring KPC, Bumi bought an 80 percent
\nstake in another coal producer, Arutmin, which operates mines in
\nSouth Kalimantan, from Australia-based BHP Billiton.<\/p>\n
In previous reports, Bumi has estimated that the average price
\nof coal in 2005 will rise by almost 9 percent due to stronger
\ndemand from China and India.<\/p>\n
Following China's move to reduce coal exports to accommodate
\ngrowing domestic demand with more power plants being constructed,
\nthe price of the coal sold by Bumi increased to an average of $35
\nper ton last year from $25.5 per ton in the previous year.<\/p>\n
Bumi's customers include China, India, Taiwan, Hong Kong,
\nMalaysia, Japan and the United States.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/bumi-to-issue-us600m-in-bonds-1447893297",
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