JAKARTA (Yosefardi) – Giant coal producer PT Bumi Resources Tbk (BUMI) has today signed agreement with China Investment Corporation (CIC) for unpaid principal debt of US$1.3 billion.
Based on the agreement, the debt to CIC will be converted (swap) with 42% BUMI’s ownership in PT Bumi Resources Minerals Tbk (BRMS), and 19% BUMI interest in PT Kaltim Prima Coal (KPC), Indocoal Resources (Cayman) Ltd, and PT Indocoal Kaltim Resources plus BUMI new shares issue worth US$150 million.
The rest of debt, excluding principal debt, will be converted into loan with tenor of 3 years with a competitive interest rate.
BUMI intends to settle its debt to CIC by end of this year, helping to accelerate BUMI’s asset growth, achieve the deleveraging objectives, strengthen the financial and capital structure, and gain opportunity of raising beneficial funding.