Semen Padang gets $63m loan<\/p>\n
JAKARTA (JP): Amsterdam-based ABN AMRO Bank N.V. agreed to
\nprovide a US$63 million export credit facility here yesterday to
\nstate-owned PT Semen Padang, a cement producer based in West
\nSumatra.<\/p>\n
The five-year loan is backed by an export guarantee from the
\nDanish export credit agency, Eksport Kredit Fonden.<\/p>\n
Semen Padang's president Abubakar said yesterday the loan,
\nwith a fixed annual interest rate of 6.7 percent, would be used
\nto buy machinery and equipment for the Indarung V plant, which
\nwas expected to be completed next April.<\/p>\n
\"We will import machinery from F.L. Smidth & Co. of Denmark,
\nthe world's largest producer of cement manufacturing equipment,\"
\nAbubakar said after the loan contract was signed yesterday.<\/p>\n
He said, the plant, which began in January last year, was
\nestimated to cost US$285.2 million: US$138.2 million of this
\nwould be met by loans from local banks, $102 million from
\noverseas financial institutions and US$45 million from Semen
\nPadang's equity.<\/p>\n
The plant is expected to produce up to 2.3 million tons of
\ncement yearly, raising the company's annual production from 3.3
\nmillion tons to 5.6 million, he said.<\/p>\n
\"This will be in line with the growth of domestic demand for
\ncement of between 12 percent and 15 percent yearly,\" he said.<\/p>\n
By April, 58 percent of the plant's construction had been
\ncompleted, 10 percent ahead of schedule, he said.<\/p>\n
Semen Padang is owned by publicly listed Semen Gresik.<\/p>\n
ABN AMRO's country manager, C.J. de Koning, said the loan was
\nthe largest export credit facility that ABN AMRO had given to an
\nIndonesian company without a government or bank guarantee.<\/p>\n
\"We see Semen Padang as one of the best performing state-owned
\ncompanies and one of the most profitable cement producers,\" he
\nsaid.<\/p>\n
He said the domestic cement industry had grown rapidly and its
\noutlook was promising.<\/p>\n
ABN AMRO had arranged about US$122 million of export credits
\nfor the domestic private and public sector, he said.<\/p>\n
The bank arranged US$340.5 million of export credits
\ndomestically last year, and US$187 million in 1995, he said.<\/p>\n
He said the bank expected to arrange export credit facilities
\nand off-shore loans worth up to US$39 million to finance the
\nimport of goods from Germany and other European countries for the
\nIndarung V plant. (das)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/semen-padang-gets-63m-loan-1447893297",
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"sponsor_url": "https:\/\/okusiassociates.com"
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