Thursday, October 05, 2006

Bumi gets US$1.2bn financing, oversubscribed?

PT Bumi Resources Tbk announced yesterday the closing of US$1.2 billion facility arranged by Credit Suisse, claiming the oversubscription on US$300 million three-year loan.

Bumi closed the sles of US$900 million floating rate notes due 2011 and 2012 by Indocoal Exports (Cayman) Limited to refinance the US$800 million fixed rate notes due 2006 and other corporate expenses. The notes were issued in two tranches, Class A-1 in US$600 million which matures Sept 2011 and carries interest rate of one-month LIBOR plus 3.25% and Class A-2 in US$300 million which matures 2012 carries LIBOR + 5% interest.
Bumi also announced that it has closed an oversubscribed syndication on a US$300 million loan facility with a three-year term at undisclosed interest rate.

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Anonymous Anonymous said...

Looks like banks not stupid after all - LIBOR plus 5% on a $300 million loan? - sounds like expensive loan for top grade coal mine during mining boom. Now maybe Bumi will pay central government profit taxes and royalty owes for the last few years ? - wahh but wait - turns out Bumi set up complicated and probably illegal transfer pricing arrangement with Cayman front company so that Bumi mines never make big profit, plus very expensive contract with friendly party with money coming in back door - that mean no tax for central government. Central government must wondering wether divestment worth it - For sure foreigner company BHP / BP and Rio Tinto always pay the tax and royalty on time from before when they own Arutmin and KPC.
As for many suppliers to the mines who send invoice and get no payment for 4 month - they probably wondering wether they can get LIBOR plus 5% on their outstanding invoice. They also wonder wether the loan money gonna be use for something else - mud getting deeper at Lapindo.

October 06, 2006 10:44 PM  
Anonymous Anonymous said...

But who is the name of this "friendly party" Pak? dont keep us guessing.

October 07, 2006 10:57 PM  
Anonymous Anonymous said...

Biggest friendly party / nyamuk that give 'uang terima kasih' (kickback) are PT Darma Henwa - for sure really owned by Bakrie themself, followed by PT Thiess Indonesia, PT Mahakam Nusa Energi and PT Multi Kontrol Nusantara. There are others also. Many friends play together with other peoples money.

October 09, 2006 9:42 AM  

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