Argo Pantes secures $42m loan

Argo Pantes secures $42m loan

JAKARTA (JP): Integrated textile producer PT Argo Pantes has
received a $42 million syndicated loan from domestic and foreign
banks to finance its expansion program, managing director Chan
Wing Wah said yesterday.

Chan said the loan was oversubscribed by 40 percent from the
company's original $30 million request.

He said the loan, which was signed in Singapore on Friday, was
lead-arranged by American Express Bank Ltd. and Schroder
International Merchant Bankers Ltd.

The other syndicate members are Deutsche Bank AG (Jakarta),
ING Bank (Jakarta), the Sanwa Bank Ltd. (Singapore), Arab Banking
Corporation (Singapore), Hua Nan Commercial Bank Ltd.
(Singapore), PT Indonesia Dai-Ichi Kangyo Bank, KDLC Leasing
Singapore Pte. Ltd., N.V. De Indonesische Overzeese Bank, Sakura
Bank Ltd. (Singapore) and Far Eastern International Bank Offshore
Banking Branch.

The loan, with a life of two to three years, carries an
interest rate just over one point more than the Singapore Inter-
bank Offered Rate (SIBOR).

Chan said the loan would be used to strengthen his company's
working capital and to finance the expansion of its dyeing and
finishing capacity.

The company has invested $15 million, on top of its routine
annual investment of $10 million to $15 million, on dyeing and
finishing equipment since July 1996. Chan said the equipment
would increase production capacity by 30 percent.

The new equipment, which produces wider and thicker fabrics,
is being installed gradually to maintain current production
levels. The installation will be completed in early 1997.

Argo Pantes, which is listed on the Jakarta and Surabaya stock
exchanges, recorded a sales revenue of Rp 476 billion ($200
million) in 1995. The company exported 40 percent of its products
to 40 countries last year, Chan said. (02)