Reuters quoted sources with knowledge of the deal said Glencore, the world biggest commodities trader is expected to sign a deal within days to give an USD 800 million to USD 900 million loans to Indonesia Bakrie Group to help it refinance its debt.

One of the sources said the deal will give Glencore more marketing rights for coal from Bakrie controlled Bumi Plc and will be backed by part of the Bakrie Group 47% stake in the coal miner. It will also give Glencore an option to turn the loan into an equity stake if Bakrie cannot repay the debt.

The sources declined to be identified because the talks were not public.

One of the sources said the marketing rights could be extended to other Bakrie non coal assets such as for zinc from Bumi Resources Minerals.

Glencore, several of whose executives are in Jakarta to help close the deal has been seen as a frontrunner and likely partner for the Bakries since news of the refinancing talks emerged last week with analysts pointing to its relationship with the family and existing coal marketing agreements.

The deal would tighten Glencore grip on coal sales from Indonesia the world's largest thermal coal exporter.

(Sourced from Reuters)