Federal Motor gets loan<\/p>\n
JAKARTA (JP): PT Federal Motor, the sole agent and
\nmanufacturer of Honda motorcycles, obtained US$100 million in a
\nsyndicated loan under an agreement with 23 foreign banks which
\nwas signed in Singapore yesterday.<\/p>\n
The three-year loan charges an annual interest rate which is
\nfloating 1.98 percent above the Singapore inter-bank offered rate
\n(SIBOR). The loan will be used to refinance a previous syndicated
\nloan which was used by Federal Motor for importing spare parts.<\/p>\n
Federal Motor, the country's largest motor-bike producer, is a
\nsubsidiary of PT Astra International which is listed on the
\nJakarta Stock Exchange.<\/p>\n
Astra's Senior Manager for Public Relations Aminuddin said
\nyesterday that the loan syndication was 60 percent
\noversubscribed, indicating strong confidence of foreign creditors
\nin the company.<\/p>\n
The loan syndication was led by the Long Term Credit Bank
\nLtd., Sanwa Bank Ltd. and Sumitomo Bank Ltd. Twenty other banks
\nin Singapore participated in the syndication.<\/p>\n
Aminuddin quoted financial analysts in Singapore as saying
\nthat the terms of the loan were among the best obtained by an
\nIndonesian private company in Singapore.<\/p>\n
The loan, for example, is secured not by Federal Motor's fixed
\nassets but by its account receivables and inventories, he said.<\/p>\n
Also present at the signing of the loan agreement in Singapore
\nwere Astra's President T.P. Rachmat and Financial Director Rini
\nM.S. Soewandi and Federal Motor's President Budi Setiadharma.
\n(vin)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/federal-motor-gets-loan-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}