Ariawest secures loans

JAKARTA (JP): PT Ariawest International secured US$614.85 million in syndicated loan facilities yesterday for the installation of new telephone lines in West Java.

Ariawest President John G. Vandras said after signing the loan agreement here that the proceeds will be used to finance the development of 500,000 new telephone lines in West Java by the end of the first quarter of 1999.

The company will start the process by installing 80,000 new telephone lines by the end of this month, he said.

Yesterday's loans were pledged by 40 international banks, led by four lead arrangers -- CIBC-CEF, Chase Manhattan Asia, Credit Lyonnais and Sanwa Bank.

The syndicated offshore facilities comprise a $430 million 8.5-year term loan, a $25-million five-year working capital loan, a $40.85-million performance bond and an 8.5-year guarantee facility of up to $199 million.

Ariawest is a partner of state-owned PT Telkom for the 15-year West Java project, which is being carried out on a joint- operation basis.

Prior to the installation of the new lines, Ariawest, which is jointly owned by PT Artimas Kencana Murni, US WEST International and the Asian Infrastructure Fund of Hong Kong, took over the operation of some 425,000 existing lines in West Java in January.

The project's next phase, from 1999-2010, will be the operational phase of Telkom facilities in West Java.

In its operations, Ariawest will use equipment from local and international telecommunications suppliers including state-owned PT Inti, Lucent Technologies of the United States, NEC Corporations of Japan and Siemens of Germany. (icn/pwn)