Banpu lends Centralink Wisesa US$ 54M in
Friday, March 23 2001 - 04:30 AM WIB
Thai coal company Banpu PCL Thursday it's Singaporean unit has made a $54 million convertible loan to PT Centralink Wisesa International.
In the report to the Thailand Stock Exchange, Banpu said its wholly-owned Banpu Minerals (Singapore) Ltd. unit on March 21 made the loan to support Centralink's bid to buy shares in two companies that operate four coal mines in Indonesia.
The loan carries an interest rate of 2% and must be repaid in four years; it can also be converted into shares up to an equivalent of 95% of Centralink's share capital.
The loan will be used to purchase shares in PT Indotambangraya Meghah and PT Ganda Upayatama, two companies that - under the joint name of Indocoal - have concessions to operate four coalmines in Indonesia.
If Banpu's loan is converted Centralink shares, the Thai company's coal reserves and marketable coal supply will increase to over 240 million metric tons from its current 60 million tons; its productive capacity would expand to 12 million tons a year from 6.8 million tons now; and the company would be able to provide a greater variety of coal. (*)