[Kabar-indonesia] Indonesian bank secures $2.8 bln for Bumi Resources buy

[Joyo at aol.com]

Indonesian bank secures $2.8 bln for Bumi buy

SINGAPORE, July 2 (Reuters) - Indonesian bank
Renaissance Capital said on Sunday it had secured $2.8
billion in debts to help fund its $3 billion
acquisition of coal mines from local miner Bumi
Resources.

The debt facilities, including $2.1 billion in senior
and junior debts and $700 million in exchangeable
debts, would be the largest overseas borrowing by an
Indonesian enterprise since the 1997/98 Asian
financial crisis.

"Creditors and investors ... are now in the process of
finalising the settlement process and closing," the
statement said. "All the formalities related to
drawdown/disbursement are expected to be executed by
the end of this week."

Securing the debts is also important to Bumi, which is
selling its core business of coal mining to invest in
the oil and gas sector. It is in the process of taking
over sister company PT Energi Mega Persada Tbk , an
oil explorer.

PT Borneo Lumbung Energi, an affiliate of the
little-known Renaissance investment bank, is borrowing
from investors a $1.6 billion senior debt, arranged by
Credit Suisse , it said in a statement.

The facilities comprise a 5-year $1 billion loan and a
6-year $600 million debt, it said.

It has also secured a $500 million junior debt
arranged by Singapore-based bank UOB Asia, the
statement said, adding that it had an eight-year tenor
with a bullet payment at maturity.

Borneo, majority owned by Renaissance Capital chief
Samin Tan, has also secured $700 million in a
four-year exchangeable debt, arranged by UOB Asia, to
help finance the equity portion required for
Indonesia's second largest acquisition.

The exchangeable debt comprises a $500 million
instrument exchangeable into 49 percent of Borneo
shares and the rest convertible into 20 percent of the
Bumi coal assets, it said without giving more details.

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Joyo Indonesia News Service
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