Tata Power to Borrow Up to 70% of Indonesian Spending

India's Tata Power Co., which bought into two of Indonesia's biggest coal mines for $1.1 billion,
said it will finance as much as 70 percent of the investment through debt.

Tata Power, the nation's second-biggest utility by sales, will raise some of the funds overseas.
Tata Power on March 31 agreed to buy 30 percent of two units of PT Bumi Resources, Indonesia's largest coal miner.


Ratan Tata, the chairman of Tata Power, is expanding the group's 96 companies, which control about 3 percent of India's $854 billion economy, to build a global brand and spread
investment risks. Shares of Bumi fell on concern the company sold the stake at a lower-than-expected price.

The price for the stakes in PT Kaltim Prima Coal and PT Arutmin Indonesia excludes working capital and other adjustments amounting to at least $200 million.