ACeS gets US$60 million loan

JAKARTA (JP): Jakarta-based satellite operator PT Asia Cellular Satellite (ACeS) signed a US$60 million loan facility yesterday from a domestic financial consortium led by the state- owned PT Danareksa Finance.

The nonrevolving bridge finance facility was prepared by Danareksa ($15.5 million), Bank PDFCI ($15.5 million), Bank Niaga ($15.5 million), Bank Dagang dan Industri ($3.5 million) and Panin Bank ($10 million).

Reksadana's president, Edgar Ekaputra, said that the loan syndication was the first ever for a satellite project in the country.

"This is the first time that financial institutions have joined together in supporting the infrastructure development of the satellite industry," he said.

He acknowledged that the satellite-based telecommunications business is complicated, causing the consortium to pledge only $60 million in loans.

"ACeS plans to look for bigger loans, but we will learn together first about the satellite business," Ekaputra said.

ACeS's president, Adi R. Adiwoso, said that the loans will be used to finance company projects, including the construction of Garuda satellites and telecommunication networks.

ACeS, set up in June 1995, is equally owned by PT Pasifik Satelit Nusantara, the Philippine Long Distance Telephone Company and Jasmine International Overseas Company of Thailand.

By operating a satellite-based mobile communications system, ACeS will facilitate the making and receiving of calls to and from places within the spacecraft's coverage. Garuda satellites, manufactured by Lockheed Martin Corporation of the United States, will allow subscribers to call fixed telephone users anywhere in the world through its gateways located in Thailand, the Philippines and Indonesia.

The cost for using the satellite service is estimated at $1 for one minute of air traffic.

Today, ACeS is scheduled to sign an agreement with Proton of Russia on the launching of the first Garuda satellite in the middle of 1998. (icn)