New Delhi, Apr 29: Tata Power Company Ltd today said it has refinanced 850 million dollar of loan, out of a total 950 million dollar, taken for the acquisition of 30 per cent equity stakes (Purchase) in major Indonesian thermal coal companies.
The company had to acquire PT Kaltim Prima Coal (KPC) and PT Arutmin Indonesia (Arutmin) (together the Coal Companies), as well as related trading companies owned by PT Bumi Resources Tbk (Bumi). The 950 million dollar bridge loan had a tenor of one year of which 850 million dollar is being refinanced with long-term loans.
The refinancing consists of a non-recourse 580 million dollar facility and a 270 million dollar facility with recourse to the company.
''We are happy to refinance the bridge loan at competitive pricing in such challenging financial markets. The rising coal prices in the international market reinforce our belief that our investment in Indonesian coal companies is timely and pragmatic,'' Tata Power Managing Director, Prasad R Menon said.
The coal companies (KPC and Arutmin) are together among the top three largest exporting thermal coal mines in the world.