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December 17, 2007 |
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INDIKA INTI: Seeks Loan to Back Bid for Berau Coal PT Indika Inti Energi is seeking loans to back its bid for a majority stake in PT Berau Coal, Bloomberg News reports citing three people involved in the deal. Indika Inti is raising debt financing to support its planned purchase of the coal company, as prices of the fuel rose to records, according to sources, who declined to be identified because the information is private, Bloomberg relates. Chief Financial Officer Azis Armand told Bloomberg that Indika Inti is continuously looking for opportunities to increase their coal reserve assets, and is aware of the possible Berau Coal divestment from the market. However, Mr. Armand said, no formal process has been commenced, the report adds. About Indika Inti Headquartered in Indonesia, Pt Indika Inti Energi (Indika), --indika.co.id/-- established in 2000, is a privately-owned investment holding company. Its major investment assets include a 46% stake in Kideco and a 100% stake in Tripatra. Kideco, the major cash flow provider to the holding company, commenced its commercial operations in 1993, with a 30-year CCOW valid until 2023. The CCOW, which is structured as a contract between Kideco and the Indonesian government and ratified by the Indonesian Parliament will prevail above other Indonesian laws and also provide for international arbitration in the event of a dispute. Fitch notes that this framework has existed for nearly 25 years, and has withstood considerable political and economic turmoil in Indonesia. Tripatra is a leading EPC and O&M service provider in Indonesia with a focus on energy and infrastructure projects. The Troubled Company Reporter - Asia Pacific reported on May 11, 2007, Fitch Ratings assigned a final issue rating of 'B' and a final recovery rating of 'RR4' to the US$250 million senior secured notes due June 1, 2012, issued by Indo Integrated Energy B.V. and guaranteed by PT Indika Inti Energi and its 100%-owned subsidiary PT Indika Inti Corpindo. On April 27, 2007, that Moody's Investors Service assigned a provisional (P)B2 corporate family rating to PT Indika Inti Energi (Indika). The rating outlook is stable. At the same time, Moody's has assigned a provisional (P)B2 rating to the proposed 5-year, US$250m senior secured bond issued by Indo Integrated Energy BV and guaranteed by Indika. This is the first time that Moody's has assigned a rating to Indika. Fitch Ratings assigned Long-term Foreign and Local Currency Issuer Default Ratings of 'B' to PT Indika Inti Energi. The Outlook for the IDRs is Stable. At the same time, the agency also assigned an expected issue rating of 'B' and an expected recovery rating of 'RR4' to the proposed US$250 million senior secured notes due in 2012 issued by Indo Integrated Energy B.V. and guaranteed by Indika and its 100%-owned subsidiary PT Indika Inti Corpindo. The final ratings are contingent upon receipt of documents conforming to the information already received. |
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