CIC Banks On a Settlement with Bumi Resources

November 01, 2013 by Chris Wright

  • Print
  • Please login
ON OCTOBER 9 sovereign wealth fund China Investment Corp. (CIC) announced a deal with Indonesian mining company Bumi Resources to exchange $1.3 billion of debt for equity stakes in several of Bumi’s Indonesian coal extraction assets. The transaction, which finally released Bumi from its punishing schedule of interest payments to CIC, marked an end to the sovereign fund’s unusual foray into direct lending in Indonesia. By taking the asset swap, CIC also eased hidden tensions with the Abu Dhabi Investment Council, the sovereign wealth fund that had been on the opposite side of the same trade in Bumi since 2009. Ironically, the spectacle of two of the world’s most powerful sovereign wealth funds squaring off over a shared asset went almost unnoticed for years. Most of the media coverage centered on increasingly heated boardroom skirmishes between British financier Nathaniel Rothschild, a member of one of the most storied banking families…

Sign-up for your free account to read this article

Get Started

Already have an account?
 

Log In Here

Updated Fund Profiles

Our market-leading fund profile library provides unrivalled analysis of more than 90 government and sovereign funds.

Register to read fund profiles

Recent SWF Investments

Search the database of direct investments and mandates by fund, industry and target market to identify past deals that match your requirements. Access over $1 trillion worth of transactions dating back to the 1960s.

Register to explore our data

Latest SWF News

Sovereign Wealth Center makes staying abreast of the most recent government and sovereign fund events easy. Our team undertakes a thorough review of global news feeds every morning and distills salient points.

Register for the latest SWF news
Join the discussion:

To be able to print this content,
you must be a subscriber

For details on your subscription options,
please contact: