Reuters <http://www.reuters.com>UPDATE 1-Indonesia's Bumi says China's CIC lends $1.9 bln<http://www.reuters.com/article/email/idUSJAK52115520090923>Wed Sep 23 11:14:48 UTC 2009 (Adds details, background) JAKARTA, Sept 23 (Reuters) - Indonesia's PT Bumi Resources Tbk <BUMI.JK> said on Wednesday that China Investment Corporation (CIC) had lent the coal miner $1.9 billion in the form of "debt-like" instruments. Shares in Bumi, one of Indonesia's biggest coal miners, had rallied last week on talk that China's sovereign wealth fund was eyeing planned bonds and warrants. [ID:nJAK415765] Indonesia is the world's biggest exporter of thermal coal and China, a major buyer of coal, has been investing in resources globally to ensure adequate supplies of energy and minerals to feed its vast economy. Out of the total being lent to CIC, $600 million is repayable in four years, $600 million in five years and $700 after six years, Bumi said in a statement. Bumi said the cash infusion would enable it to implement growth strategies quickly and give it a stable capital structure. "More importantly, the partnership creates the platform for CIC and Bumi to pursue investment opportunities jointly," said Ari Hudaya, president director and CEO of Bumi. CIC would receive a 12 percent annual cash coupon and a total IRR (internal rate of return) of 19 percent, the firm said. Bumi, which is controlled by the powerful, politically connected Bakrie family, said the firm would use the money for debt restructuring and capital expenditure. Bumi's shares, which lost about 90 percent of their value in the financial crisis last year, have rallied this year and are up 268 percent, outperforming the more than 80 percent gain in the broader market <.JKSE>. (Reporting by Ed Davies; Editing by Sara Webb) This service is not intended to encourage spam. The details provided by your colleague have been used for the sole purpose of facilitating this email communication and have not been retained by Thomson Reuters. Your personal details have not been added to any database or mailing list. If you would like to receive news articles delivered to your email address, please subscribe at www.reuters.com/newsmails (c) Copyright Thomson Reuters 2009 All rights reserved. Users may download and print extracts of content from this website for their own personal and non-commercial use only. Republication or redistribution of Thomson Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. Thomson Reuters and its logo are registered trademarks or trademarks of the Thomson Reuters group of companies around the world. Quotes and other data are provided for your personal information only, and are not intended for trading purposes. Thomson Reuters and its data providers shall not be liable for any errors or delays in the quotes or other data, or for any actions taken in reliance thereon.
