Buma pushes for tight price, loose terms
Indonesian coal miner Bukit Makmur Mandiri Utama (Buma) has shocked bankers by returning to the international loan market to refinance a $600m loan just four months after it was signed. The company wants more money, a longer maturity, and looser covenants — but is also demanding tighter pricing.
Buma is keen to increase the loan to as much as $750m and extend the tenor from five years to seven. 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 the
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