SINGAPORE Nov 1 Barclays Capital is providing
$200 million in one-year bridge financing to Jakarta-listed
thermal coal exporter PT Bumi Resources , Basis Point
reported on Tuesday, citing banking sources.
The loan would help the company raise funds to prepay a $600
million tranche of convertible debt issued to sovereign wealth
fund China Investment Corp (CIC), it said.
The Basis Point report comes as Indonesia's Bakrie Group,
which partly owns Bumi Resources, entered a deal to sell about
half its stake in London-listed Bumi Plc to coal miner
PT Borneo Lumbung Energi in a $1 billion deal to avoid
a loan default.
The bridge financing goes hand-in-hand with a $200 million
one-year bridge loan provided by JPMorgan as well as
$350 million in two separate term loans arranged recently for
Bumi Resources, Basis Point said.
Barclays declined to comment, while JPMorgan and Bumi were
not immediately reachable.
The total $750 million from the bridge and term-loan
facilities are more than sufficient to repay the $600 million
due October 2013 tranche of the $1.9 billion debt issued to CIC
in September 2009, Basis Point said.
The CIC debt pays a cash coupon of 12 percent annually and
an additional amount on maturity, taking total annual returns on
CIC's investment to 19 percent, it said.
(Reporting by Prakash Chakravarti and Eveline Danubrata;
Editing by Vinu Pilakkott)