Indonesia's largest thermal coal exporter PT Bumi Resources Tbk (BUMI) is reported to secure US$400 million from Axis Bank Hong Kong. The loan facility will be used by Bumi to refinance the first tranche of US$600 million debt to China Investment Corporation (CIC).
As reported by Investor Daily citing IFR Asia, the 5-year facility will charge annual interest rate of 5.5% above Libor for the first year and 6.5% above Libor onwards.
Bumi Director Dileep Srivastava said the company will refinance the installment. However, he declined to explain the source of financing. "We don't want to speculate. For sure, the first tranche will be paid this month," he said.
Disclosure: No position at the stock mentioned above.
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