Indonesia's Bumi Resources Jumps 7% on Debt Indenture Nod
[caption id="attachment_246043" align="aligncenter" width="614"] Women walk in front of the Bakrie Tower in the Jakarta business district on March 28, 2011. (Reuters Photo/Enny Nuraheni)[/caption]
Shares of Indonesia's Bumi Resources, Asia's top thermal coal exporter, rose as much as 7.3 percent on Friday after the company received bondholders' consent to change its debt indentures.
On Thursday evening, Bumi received consent from 84.38 percent of bondholders on the $300 million, 2016 notes and consent from 89.68 percent of bondholders on the $700 million 2017 notes. Deutsche Bank handled the agreement.
Last month, the Bakrie group-controlled coal miner said it was confident that shareholders would also approve a $1.3 billion debt-for-equity swap deal with China sovereign wealth fund CIC, which it said would cut interest costs by $216 million.
Bumi shares traded at 285 rupiah at 0235 GMT, or up 3.6 percent. They touched a high of 295 rupiah earlier. The miner's stock had lost more than a third of its value since its peak in February. The broader index was down 0.2 percent.
Bank Indonesia May Buy Japan Govt Bonds, to Aid Rupiah Liquidity
Indonesia's central bank said it could buy Japanese government bonds (JGB) and bond repurchase agreements held by Japanese banks in the country to help bolster liquidity in the rupiah in case of a financial crisis.
The rupiah, Asia's worst performing currency, is among the most vulnerable to capital outflows from a tapering in monetary stimulus by the US Federal Reserve due to concerns over Indonesia's sizeable current-account deficit.
The rupiah hit a near 5-year low of 12,075 to the dollar on Friday, and has fallen more than 20 percent so far this year.
Earlier on Friday, Bank Indonesia announced an expansion of its currency swap deals with the Bank of Japan to $22.76 billion, nearly double the $12 billion previously.
"The scheme will expand asset coverage, which can be used for Bank Indonesia's liquidity management, and improve flexibility in the liquidity management of banks operating in Indonesia," Bank Indonesia's spokesman Difi A. Johansyah said.
The G20 economy has secured a currency swap deal with Bank of Korea and the People's Bank of China, as a second line of defence in bracing against a sharp fall in the rupiah.
Japan's MUFG Provides Its First Islamic Loan in Indonesia: Sources
Mitsubishi UFJ Financial Group's core banking unit will become the first Japanese bank to provide an Islamic loan in Indonesia, financial sources said, a key step that the bank hopes will help it build up its Islamic financing business.
Rapid economic growth in Muslim-majority countries in Southeast Asia and the Middle East has spurred many non-Muslim institutions to foray into Islamic finance. The top 20 Islamic banks have been growing 16 percent annually in the last three years, far outpacing their conventional rivals, according to Ernst and Young.
Bank of Tokyo-Mitsubishi UFJ (BTMU) joined hands with BNP Paribas, CIMB, Standard Chartered and HSBC to provide a total $50 million in 3.5-year loans to a unit ofIndonesia's largest automotive distributor Astra International, the sources said.
They declined to identified as they were not authorised to speak publicly about the matter.
A BTMU spokesman declined to comment.
BTMU set up an Islamic finance team in Malaysia in 2008 and the team now has 25 bankers. In addition to Malaysia and Indonesia, the bank has also provided Islamic finance in Singapore and Brunei.
Smoking to Blame as Lung Cancer Deaths Rise in China
A recent conference in China highlighted both the huge toll tobacco use is taking on the country and the need for urgent action to stem this growing epidemic.
Cigarette smoking is the main force behind a 465 percent increase in lung cancer deaths in China over the past 30 years, making lung cancer the top cause of cancer in the country, according to doctors and researchers speaking at the Sixth China North-South Lung Cancer Summit in Beijing.
Today is the Great American Smokeout
When you quit smoking, how long does it take for your health to improve?
No time at all. The health benefits of quitting smoking are almost immediate. As soon as you quit, you start to improve your health and increase your chances of leading a long, healthy life.
For many reasons, any day is a good day to quit smoking. But today is an especially good day. It’s the American Cancer Society’s Great American Smokeout – a day when smokers are encouraged to quit smoking, or to make a plan to quit smoking.
New Report: Africa at Risk of Becoming ?Epicenter of Tobacco Epidemic?
A new report by the American Cancer Society warns that without urgent action to prevent tobacco use, Africa will be the "future epicenter of the tobacco epidemic" with soaring rates of tobacco use and related disease and death.
According to the report, rates of tobacco use are likely to increase as African nations continue to experience strong economic and massive population growth. The number of African smokers will skyrocket from 77 million today to 572 million by 2100 unless proven measures to reduce tobacco use are implemented and enforced throughout the continent.
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