JAKARTA, Oct 22 (Reuters) - Shares in Indonesian coal miner PT Bumi Resources fell as much as 8 percent on Thursday following a media report that the company may raise more debt.
Local newspaper Bisnis Indonesia reported that Bumi, crown jewel of the politically connected Bakrie group, has been looking at the possibility of borrowing another $500 million to fund expansion.
'Bumi's shares fell the most among other Bakrie stocks. It continues to drop because of news that the firm wants to seek more funds from $500 million bonds, which got a negative response from the market,' said John Teja, head of sales at Ciptadana Sekuritas.
By 0850 GMT, Bumi shares were down 7 percent at 2,625 rupiah.
Bumi announced on Sept. 23 that China Investment Corporation (CIC) has agreed to lend it $1.9 billion with a 12 percent annual cash coupon and a 19 percent internal rate of return.
Shares in Bumi, which fell about 90 percent of value in last year's financial crisis, have risen 194 percent so far this year, outperforming a 79 percent increase in the broader market .
(Reporting by Tyagita Silka; Editing by Sara Webb)
((tyagita.silka@thomsonreuters.com; Reuters Messaging: tyagita.silka.thomsonreuters.com@reuters.net; +62 21 384 6364 ext 905)) Keywords: MARKETS INDONESIA/HOTSTOCKS (If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Local newspaper Bisnis Indonesia reported that Bumi, crown jewel of the politically connected Bakrie group, has been looking at the possibility of borrowing another $500 million to fund expansion.
'Bumi's shares fell the most among other Bakrie stocks. It continues to drop because of news that the firm wants to seek more funds from $500 million bonds, which got a negative response from the market,' said John Teja, head of sales at Ciptadana Sekuritas.
By 0850 GMT, Bumi shares were down 7 percent at 2,625 rupiah.
Bumi announced on Sept. 23 that China Investment Corporation (CIC) has agreed to lend it $1.9 billion with a 12 percent annual cash coupon and a 19 percent internal rate of return.
Shares in Bumi, which fell about 90 percent of value in last year's financial crisis, have risen 194 percent so far this year, outperforming a 79 percent increase in the broader market .
(Reporting by Tyagita Silka; Editing by Sara Webb)
((tyagita.silka@thomsonreuters.com; Reuters Messaging: tyagita.silka.thomsonreuters.com@reuters.net; +62 21 384 6364 ext 905)) Keywords: MARKETS INDONESIA/HOTSTOCKS (If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.