Buma shocks bankers with aggressive refi

Indonesian coal miner Bukit Makmur Mandiri Utama (Buma) is returning to the international loan market to refinance a $600m loan it signed just four months ago. The company wants more money, a longer maturity, and looser covenants — but has shocked bankers by demanding tighter pricing too.

  • 15 Mar 2011

Buma is keen to increase the loan to as much as $750m and extend the tenor from five years to seven years. But bankers said a simultaneous request for looser financial covenants and a tighter margin could push lenders too far.

“Nothing has changed in the underlying credit but ...

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