Bumi to pay US$600 mio debt in Oct. - Insider Stories

Indonesia’s biggest thermal coal exporter PT Bumi Resources Tbk (BUMI) will pay US$600 million to China Investment Corporation (CIC) in October this year.
"Yes, we will settle US$600 million debt to CIC when it matures in October," said Ari Saptari Hudaya, Bumi’s President Director when he visited the cemetery of H. Achmad Bakrie in Karet Bivak Public Cemetery, today. The event was also to commemorate Bakrie 69th anniversary.

According to him, Bumi has no plan to issue new bonds to pay the loan.
“There is no plan for bond issuance. We will use the company’s internal cash,” he said.

The loan payment to CIC is part of the target to decrease the amount of Bumi’s debt amounted to US$1 billion this year.
CIC is one of the biggest creditors to Bumi Resources.
Bumi secured US$1.9 billion senior debt in September 18, 2009, from Country Forest Limited, a subsidiary of CIC.

The loan facility is divided into 3 commitments namely commitment A valued to US$600 million and mature in 4 years since the withdrawal.
Commitment B of US$600 million will mature in 5 years post-withdrawal and commitment C valued to US$700 million.
Meanwhile, the total internal rate of return (IRR) from the loan reached to 19%.