Ricky Putra gets US$30m syndicated loan<\/p>\n
JAKARTA (JP): Garment producer PT Ricky Putra Globalindo of
\nthe Ricky Group signed yesterday a US$30 million syndicated loan
\nfacility to refinance existing debts and strengthen its
\ndistribution division.<\/p>\n
The company's president, Ricky Gunawan, said yesterday he was
\nconfident the loan would not burden the company despite the
\nrupiah's continued decline against the U.S. dollar, because of
\nthe company's significant earning from exports.<\/p>\n
\"We always make sure our foreign debt is in line with our
\ntargeted exports, which contributes 30 percent to our total
\nsales,\" Ricky said after the loan signing.<\/p>\n
He said the company, manufacturer of GT underwear and other
\nbrands of clothing, would start hedging only if the loans in the
\ndollar exceeded the targeted export value.<\/p>\n
Ricky said the sharp increase in domestic interest rates would
\nnot greatly affect the company because loans in rupiah were
\nrelatively small.<\/p>\n
\"However, a monetary phenomenon like this would definitely
\naffect business activity because our products are basic needs,\"
\nhe said.<\/p>\n
\"But I'm sure it would only be temporary,\" he added.<\/p>\n
The revolving loan will be arranged by ING Barings and the
\nSanwa Bank in Singapore and will carry an interest rate of 1.65
\npercent above the Singapore Interbank Offered Rate (SIBOR).<\/p>\n
Ten banks participated in the loan, including Standard
\nChartered Bank, Arab Banking corporation, Creditanstalt
\nBankverein, Deutsche Bank, Bank BNP Lippo Indonesia and Tokai
\nLippo Bank.<\/p>\n
The rupiah has been under attack recently, after the
\ngovernment floated the currency. It has slipped by nearly 20
\npercent since then.<\/p>\n
The rupiah recovered slightly after the central bank sharply
\nraised its interest rate, but in the last three days plunged to
\nalmost the same value before the bank raised its interest rate.<\/p>\n
Yesterday, the rupiah further dropped to over Rp 3,000 against
\nthe American dollar but recovered slightly in the afternoon to Rp
\n2,900.<\/p>\n
Ricky said his company could obtain the syndicated loan
\ndespite the monetary upheaval, which also hit other neighboring
\ncountries because the loan had been arranged three months in
\nadvance.<\/p>\n
Marketing Director of ING Barings in Singapore, Jan Willem
\nOverwater, said yesterday at the signing he had confidence in
\nRicky Putra and believed the current situation would soon return
\nto normal.<\/p>\n
Ricky said 50 percent of the loan would be used to refinance
\nits debts and the remaining 50 percent to develop its subsidiary
\ncompanies throughout the country.<\/p>\n
The company has six subsidiary companies to distribute its
\nproducts in Java and Sumatra. The company produces about 9.5
\nmillion dozens of garments yearly, of which 1.2 million dozen
\ncomprises underwear.<\/p>\n
The company's corporate finance director Victor Franziscus
\nsaid yesterday his company expected its revenue to reach Rp 143
\nbillion (US$47.66 million) this year, up from Rp 116 billion last
\nyear.<\/p>\n
He targeted revenue would continue to rise to Rp 178 billion
\nnext year. (das)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/ricky-putra-gets-us30m-syndicated-loan-1447893297",
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"sponsor_url": "https:\/\/okusiassociates.com"
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