Antam gets fresh loans from BCA for expansion<\/p>\n
Rendi Witular, The Jakarta Post, Jakarta<\/p>\n
State-owned mining company PT Aneka Tambang (Antam) announced
\non Wednesday that it had received US$60 million in loans from
\nBank Central Asia (BCA), the country's third largest bank, to
\nfund the company's ferronickel expansion project.<\/p>\n
Antam said in a press statement that the loans carried an
\ninterest rate of between 7 percent and 7.5 percent, with a
\nmaturity period of seven years and a 28-months grace period.<\/p>\n
The company recently issued a seven-year note worth $200
\nmillion, also to raise funds for the ferronickel project. The
\nnotes carry a 7.37 percent coupon rate, with a yield to maturity
\nof 7.87 percent.<\/p>\n
Antam, which is listed in Jakarta and Sydney, is currently in
\nthe process of expanding its ferronickel factory under a project
\nknown as FeNi III.<\/p>\n
With the expansion Antam expects to double its production of
\nferronickel to 26,000 tons per year from the current 11,000 tons.
\nThe project is also aimed at maintaining the company's
\ncompetitive advantage as the world's lowest-cost nickel producer.<\/p>\n
The project, which is scheduled for completion in 2006, is
\nprojected to cost Antam between $320 million and $330
\nmillion.<\/p>\n
Besides nickel, Antam also mines gold, bauxite, iron sand and
\nsilver. Its exploration area covers a total of 2.7 million
\nhectares.<\/p>\n
The government owns a 65 percent stake in the company, while
\nthe remaining 35 percent shares are owned by the investing
\npublic.<\/p>\n
Meanwhile, BCA said in a press statement that its loan
\nagreement with Antam reflected the growing confidence of banks in
\nthe corporate sector.<\/p>\n
"The loan facility to Antam has shown that BCA is getting more
\nactive in pursuing its role as a financial intermediary," BCA
\nsaid.<\/p>\n
Banks have for long been reluctant to channel loans to the
\ncountry's corporate sector as they consider the business
\nenvironment as not yet being conducive for companies to develop
\ntheir businesses and repay their loans.<\/p>\n
The corrupt judicial system and the weakness of the existing
\nbankruptcy law in protecting creditors are also factors
\npreventing the banks from channeling loans.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/antam-gets-fresh-loans-from-bca-for-expansion-1447893297",
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