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)