PT Polyfin secures DM134 million loan<\/p>\n
JAKARTA (JP): Polyester chip and yarn maker PT Polyfin
\nCanggih, a sister company of integrated textile maker PT
\nArtostex, has secured a DM 134 million (US$77.9 million) loan to
\nfinance its expansion program.<\/p>\n
Polyfin president Sinatra Arto Hardy said Thursday the loan,
\nthe second lending facility signed by the company last week,
\nwould be provided by IKB Deutsche Industriebank AG, a German
\nbank.<\/p>\n
\"The money will be used to finance our expansion program,\"
\nSinatra said.<\/p>\n
He added the Bandung-based firm would buy more machinery from
\nGerman firm Zimmer AG to increase the production capacity to
\n80,000 tons of polyester chip and yarn from 70,000 tons annually.<\/p>\n
He said the loan disbursement could be either in the U.S.
\ndollar or Deutschemark.<\/p>\n
If the loan is provided in U.S. dollars, the interest rate
\nwill be 1.05 percentage points above the London Inter Bank
\nOffered Rate (LIBOR). \"In marks, the interest rate will be 1.05
\npercentage points above the Frankfurt Inter Bank Offered Rate
\n(FIBOR),\" he said.<\/p>\n
The loan will mature in 10 years.<\/p>\n
IKB senior vice president Stefan Renshinghoff said the bank
\ninitially planned to invite other banks to provide the loan to PT
\nPolyfin.<\/p>\n
\"But, we later decided to take the loan alone as we are upbeat
\nover the firm's performance as well as its market prospects,\" he
\nsaid.<\/p>\n
According to Renshinghoff, IKB has arranged credit facilities
\nto 50 percent of the German capital goods exported to Indonesia.<\/p>\n
Sinatra said Polyfin's unaudited sales revenues reached Rp 430
\nbillion ($182 million) last year, compared to Rp 423 billion in
\n1995.<\/p>\n
As in the past, Sinatra said, Polyfin would export about 55
\npercent of its products to Europe, Asia, the U.S. and South
\nAmerica.<\/p>\n
Sinatra was optimistic worldwide demand for oil-based
\npolyester would rise as cotton-base fiber would become more
\nexpensive. He estimated the worldwide demand for polyester grows
\nabout 5 percent annually.<\/p>\n
Polyfin is 90 percent owned by PT Artostex and 10 percent by
\nthe Arto Hardy family.<\/p>\n
On Tuesday, Polyfin signed a $178 million syndicated loan
\nwhich was arranged by Malaysia's Asean Bank Malaysia Berhad.,
\nBank International Indonesia, Panin Bank, Bank Umum Nasional and
\nBank Universal.<\/p>\n
It announced a plan Tuesday to issue a $41 million mandatory
\nconvertible bond. PT Istethemar Finas Securities and PT Pentasena
\nArthasentosa will act as the arrangers for the bond offer.<\/p>\n
Sixty percent of the proceeds from the bond issue will be used
\nto expand the company's business, 20 percent to increase working
\ncapital and 20 percent to pay rupiah loans. (jsk)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/pt-polyfin-secures-dm134-million-loan-1447893297",
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