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.