Borneo Lumbung $1 Billion Loan Said to Get First Commitment

PT Borneo Lumbung Energi & Metal (BORN)’s $1 billion loan has attracted a $200 million commitment from First Gulf Bank PJSC (FGB), a person familiar with the matter said.

First Gulf Bank joins as a bookrunner with a so-called take and hold commitment, the person said, asking not to be identified because the details are private. The take and hold is the amount of a loan that banks intend to retain on their balance sheet rather than selling to other banks in general syndication.

Ken Allan, Borneo Lumbung’s marketing director, didn’t immediately return a message left for him by phone or an e-mail seeking comment on the financing. Two messages left with the office of Mustaza Bin Kassim, First Gulf Bank’s Singapore chief executive officer, weren’t immediately returned.

Standard Chartered Plc (STAN), which fully funded the $1 billion loan in January, is arranging the syndication, the person said. The London-based lender began approaching banks to join the facility in November, a person familiar with the matter said at the time. In an unrelated deal, First Gulf Bank said in a March 25 statement it’s lending $350 million to PT Asmin Koalindo Tuhup, a unit of Borneo Lumbung, for working capital.

Borneo Lumbung, a Jakarta-based maker of coking coal, said in January that it had bought a 23.8 percent stake in coal producer Bumi Plc from PT Bakrie & Brothers for $1 billion cash. Coal mines in Indonesia supply China, the world’s second-biggest economy.

To contact the reporter on this story: Wendy Mock in Hong Kong at wmock3@bloomberg.net

To contact the editor responsible for this story: Shelley Smith at ssmith118@bloomberg.net

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