ALatieF gets $75m for port facilities

ALatieF gets $75m for port facilities

JAKARTA (JP): PT ALatieF P & O Port Development Company (APPDC) was granted a syndicated loan of US$75 million yesterday to finance the construction of port and marine facilities in Amamapare, Irian Jaya which will support the operation of a copper mining firm.

The loan, which was arranged by the Singapore branch of HSBC Investment Bank Asia Ltd. and the Commonwealth Bank of Australia, will mature in five years and can be extended for up to 10 years.

APPDC's president, Usman Ja'far, said after signing the loan agreement that the company will use the funds to finance the establishment of port and marine facilities in Amamapare to support PT Freeport Indonesia's operations.

Freeport Indonesia, a joint venture 80 percent owned by Freeport McMoRan Copper & Gold of the United States, 10 percent by the Indonesian government, and another 10 percent by PT Indocopper Investama, operates a large copper and gold mine in Grasberg, Irian Jaya.

Usman said that APPDC's shareholders -- PT ALatieF Nusakarya Corporation and P & O Australia Ltd. -- have agreed to invest $100 million, comprising of an equity of $25 million and a loan of $75 million, to construct the port and marine facilities.

According to the Hongkong and Shanghai Banking Corporation, its Jakarta branch will contribute $17.5 million to the syndicated loan facility for APPDC, the Commonwealth Bank of Australia $17.5 million, the Hong Kong branch of the First National Bank of Chicago $10 million, the Singapore branch of National Westminster Plc. $10 million, the Jakarta branch of ABN Amro Bank $5 million, PT IBI Indonesia Bank $5 million, the Singapore branch of the Long-Term Credit Bank of Japan $5 million and the Royal Bank of Scotland Plc. $5 million. (riz)