Jun 7, 2011

Bayan seals US$185 mio loan to buy coal

Coal miner PT Bayan Resources Tbk (BYAN), that is controlled by businessman Dato' Low Tuck Kwong, signed a US$185 million loan with PT ANZ Panin Bank and Standard Chartered Bank Singapore Branch on May 31, 2011 to buy nine coal concessions in East Kalimantan.
In a information disclosure submitted yesterday, the company said that the nine coal concessions namely PT Apira Utama, PT Bara Sejati, PT Cahaya Alam, PT Tiwa Abadi, PT Dermaga Energi, PT Orkida Makmur, PT Silau Kencana, PT Sumber Api, and PT Tanur Jaya.
The settlement will be paid one year after the loan is disbursed. The funds would be charged with interest rate based on LIBOR plus a margin per year. 
The company has to fulfill financial ratio based on the settlement and maintain the majority shareholder at minimum 35%. Bayan would also use the loans to purchase supporting facility, including land and building near the concessions’ area.  The loan is guaranteed by Bayan’s subsidiary and subordinate shareholders' loans and certain subsidiaries. 

Disclosure: No position at the stock mentioned above.

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