Aug 20, 2010

Newmont to secure US$200 mio loan

PT Newmont Nusa Tenggara (NNT) is going to secure US$200 million in additional loans from one European bank, outside loan commitments from two foreign banks and one local bank namely Bank Mandiri, BNP Paribas, and Sumitomo Mitsui Banking Corporation-for sixth- and seventh-phase working capital.
President Director of NNT Martiono Hadianto, as reported by today, explained the extraordinary shareholders general meeting (EGM) yesterday approved the management to seek additional loans to make up a total loan of US$800 million.
"It means that one more bank is ready to lend their fund. I forgot the name, but the bank is from Europe. The entire US$800 million loans are expected to be settled in September," he said yesterday.
Previously, Vice President Director of PT Bank Mandiri Tbk Riswinandi admitted the bank and Sumitomo Mitsui Banking Corporation, and BNP Paribas had been named the arranger for a total loan of USS600 million.
The loans, he added, had tenures of between 5 and 7 years. However, the interest rates had not been fixed.
"The loans are equally distributed, each of which will lend US$200 million."
As for the result of the EGM yesterday, Martiono explained the majority of the Newmont shareholders had approved the realization of the initial public offering (IPO) of 10% shares in the first quarter of 2011 provided that the divestiture of 7% shares had to be settled first.
According to him, the divestiture process was entering the final phase of determining price agreement with the government.
After the price was agreed, the Minister of Energy and Mineral Resources (ESDM) was expected to offer the shares to the central government represented by the Minister of Finance.
The government had 30 days after the offer to respond to it. If the central government was willing to buy the shares, Newmont would give 60 days to settle the sale and purchase transactions, so the divestiture could be completed by the end of November 2010.
Separately, Director General of Mineral, Coal, and Geothermal at the Ministry of Energy and Mineral Resources Bambang Setiawan disclosed the negotiation was still discussing the purchasing price.
As for shares to be offered to the market, Martiono said the shares would be new ones.
Currently, Newmont and Sumitomo controlled NNT through Nusa Tenggara Partnership which owns a 56% stake. The stake will be reduced to 49% since a 7% stake will be divested to Indonesia

Disclosure: No position at the stock mentioned above.

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