Bumi & Bumi Minerals, what is next?
Indonesia’s largest coal exporter PT Bumi Resources Tbk (BUMI) aims to dispose up to 20% stake in non-coal mining company PT Bumi Resources Minerals Tbk (BRMS) to strategic investors.
The shares sale will be used by Bumi to put down its debt, particularly to its largest lender China Investment Corporation (CIC) and other creditors. Bumi plans to pay another US$600 million to CIC.
Last year, Bumi secured a 4-year loan facility of US$600 million from China Development Bank. The facility was used by Bumi to refinance its bridging loan facilities to Bank of America-Merrill Lynch and J.P.Morgan.
“To refinance our debt to CIC, we have planned to recover some receivables and some accounts as well as monetizing assets. We are exploring to dispose 10%-20% stake in BRMS to strategic investors,” said Director Dileep Srivastava at Bumi Resources.
Disclosure: No position at the stock mentioned above.