JAKARTA (Yosefardi) – Giant coal miner PT Bumi Resources Tbk (BUMI) has transferred 19% of its holdings in PT Kaltim Prima Coal (KPC), valued at $950 million to China Investment Corporation (CIC) as part of debt settlement agreement announced on October 9, 2013.
As sum of US$1,989 million in due to CIC as loan principal, deferred interest and make-whole costs. With this transfer of KPC stake, the amunt payable to CIC stands reduced to $1,039 million.
While 42% of BUMI’s holdings in PT Bumi Resources Minerals Tbk (BRMS), valued at US$257 million, and US$150 million BUMI equity are expected to be transferred to CIC by September 2014, following the closure of the BUMI rights offering approved on June 30, 2014.
Consequentially, the residual loan to CIC would reduce further to US$632 million, at an interest rate of LIBOR +6.7% per annum.