16 banks to lend $690 million for Timor car project
16 banks to lend $690 million for Timor car project
JAKARTA (JP): A consortium of four state banks and 12 private
banks decided yesterday to disburse US$650 million in 10-year
loans to PT Timor Putra Nasional to carry out the national car
project.
Apart from the $650 million in loans, Bank Dagang Negara
(BDN), as the consortium's leader, had earlier disbursed $40
million in bridging finance to Timor Putra.
BDN's newly installed president Salahuddin Nya'Kaoy said the
four state banks would provide half of the $650 million and
private banks would provide the rest.
"There are no problems. We're only to finalize the legal
documentation of the loans," Salahuddin told journalists after
chairing a meeting with participating banks and Timor Putra at
his office.
The four state banks are BDN, Bank Rakyat Indonesia (BRI),
Bank Expor Impor (Exim) and Bank Tabungan Negara (BTN).
But Salahuddin declined to name the 12 private banks
participating in the consortium.
"We will announce it at the right time," he said.
The disbursement of the loans to Timor Putra has been slow
because the private banks asked to join the loan syndication
waited for the results of a study on the Timor car project.
The government granted Timor Putra exclusive rights to
manufacture a so-called "national car" last year. It is currently
cooperating with South Korea's Kia Motors Corp. to produce the
cars.
Fully assembled Sephia sedans -- renamed Timor -- are
presently imported from South Korea because Timor Putra's
production facilities are still being built.
The national car receives import duty and luxury tax
exemptions, driving its cost down 60 percent over other cars in
the domestic market.
Timor Putra has proposed $690 million in loans from a
syndication of state and private banks to help finance the
construction of its manufacturing facilities in Cikampek, West
Java.
Timor Putra president Hutomo Mandala Putra said yesterday his
company wanted the loans to be disbursed soon to expedite the
construction of the facilities.
"We hope the agreement on the loan facility will be signed
this month," Hutomo said.
Hutomo, President Soeharto's youngest son, reiterated that his
company had not asked for special facilities such as soft loans
for the project.
The loans would carry an annual interest rate of about 3
percent over three-month-to-six-month deposit rates and mature in
10 years, with a grace period of three years, he said.
Hutomo added that all the loans would be used to finance the
project, which would cost $1.09 billion.
The facility would have a total annual production capacity of
70,000 Timor sedans and utility vehicles.
"With the two products, we are optimistic about producing and
selling at least 40,000 vehicles a year," Hutomo said.
He said his company would export 300 locally assembled Timor
cars a month to Malaysia starting next month. (rid)