Welcome to the new Independent website. We hope you enjoy it and we value your feedback. Please contact us here.

Business News

Bumi lender quits Standard Chartered

A leading Standard Chartered banker involved in making a $1bn (£620m) loan to the Indonesian chairman of the London-listed miner Bumi has quit after the bank struggled to get other lenders on board.

Samin Tan used the funds to buy a stake in the coal-miner only to see the investment plunge in value from $1bn to $230m as the board was rattled by rifts between key shareholders, including the financier Nat Rothschild and Indonesia's influential Bakrie group. More recently, Bumi launched an investigation into alleged financial irregularities at its Indonesian units.

The loan is secured, reducing the British bank's risk, but so far it has sold down just $230m of the loan, leaving $770m on its books.

Sources told Reuters Peter Kay, the global head of leveraged finance syndication at Standard Chartered, was pushed out of the bank. Valerie Tay, a spokeswoman for the bank, said he resigned last month to pursue other interests.

A senior source at Standard Chartered said Mr Kay would have been involved in, but not solely responsible for, the decision to extend the loan to Mr Tan.