Apr 11, 2012

Bayan Resources seals US$950 mio loan

Coal miner PT Bayan Resources Tbk (BYAN), that is owned by Dato' Low Tuck Kwong, has secured a US$950 million loan facilities from seven banks.
President Director Eddie Chin at Bayan said the banks are Sumitomo Mitsui Banking Corporation, ANZ, Bank Mandiri, The Hongkong and Shanghai Banking Corporation, Standard Chartered Bank, JPMorgan, and Natixis.
According to him, initially the company has loan commitment of US$750 million with option to raise to US$950 million within 15 months.
"These will be the largest financing for us. We will use the facilities as long term financing, working capital, and capital expenditure," he said.
This year, Bayan will spend US$200 million capital expenditure in which the financing will be sourced from the facilities. The company spent US$80 million-US$100 million capex last year.
Bayan expects 18 million tons-20 million tons of coal production this year, a 16%-29% increase from 15.5 million tons last year.

Disclosure: No position at the stock mentioned above. 

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