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Bumi Resources Repays $600M To CIC

Indonesian coal company Bumi Resources has paid back $600 million of a $1.9 billion loan to China’s sovereign wealth fund China Investment Corp.

Indonesian coal company Bumi Resources has paid back $600 million of a $1.9 billion loan to China’s sovereign wealth fund China Investment Corp. (CIC), Financial Times reports. Bumi, which had net debt of $3.4 billion in June, has refinanced a new credit facility from a syndicate of banks including Bank of America Merrill Lynch, Deutsche Bank, Barclays Bank and J.P. Morgan, and reduced interest payments from 19 percent. The new loan carries a coupon rate of 6 percent.

The first tranche of the CIC loan was due to mature on September 30, 2013, and has been paid off in advance by mutual consent, decreasing the interest by $72 million on a yearly basis. London-listed resources company Bumi plc, owned by the Bakrie and Rothschild families, holds 29 percent in Bumi Resources.

Click here for the story from Financial Times.

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