China’s CIC Swaps $1.3B Bumi Resources Debt To Equity


China’s sovereign wealth fund, China Investment Corp., has swapped its US$1.3 billion outstanding debt of Jakarta, Indonesia-headquartered Bumi Resources Tbk for equity stakes of the coal miner, according to a company release.

A unspecified portion of CIC’s debt will be swapped into a 42% stake of Bumi Resources’ holdings of Bumi Resources Minerals, a 19% stake of Bumi Resources’ holdings of each of Kaltim Prima Coal, Indocoal Resources and Indocoal Kaltim Resources.

CIC will also get up to US$150 million in new shares of Bumi Resources.

The remaining debt will be converted into a three-year loan at a competitive market rate.

In 2009, CIC issued US$1.9 billion debt in Bumi Resources in its first significant investment in Indonesia.

 

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