SINGAPORE, Nov 1 (Reuters) - 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)