Bumi cancels plan to issue MTNs

JAKARTA: Publicly-listed mining company PT Bumi Resources has canceled a plan to issue medium term notes (MTNs) worth US$56 million to finance its recent acquisition of PT Kaltim Prima Coal (KPC), the country's largest coal producer.

In a letter to the Jakarta Stock Exchange late on Thursday, Bumi's finance director Eddie J. Soebari said that financial service company Wolf Mountain Mining Investment Ltd. had agreed to help Bumi in providing the $56 million.

He explained that the loans provided by Wolf Mountain would carry an interest rate of 18 percent per year, maturing within a five year period.

Bumi has recently completed the acquisition of KPC from Anglo- American energy titan BP Plc. and Anglo-Australian mining giant Rio Tinto for around $500 million. The company paid a down payment of $40 million to BP and Rio Tinto in July.

Bumi had also received US$404.5 million in loans from international lenders.

The company had initially planned to finance the remaining funding needs through the issuance of MTNs. -- JP