Astra gets revolving facility to repay loans

JAKARTA (JP): Publicly-listed PT Astra International, the country's largest automobile group, has secured US$160 million in revolving loan facility to repay its short-term, mature debts, the company announced over the weekend.

The three-year syndicated loan, which was signed here on Friday, was arranged by seven banks in Singapore including ABN- AMRO Bank NV, Banque Paribas, DKB Merchant Bank Ltd., The Industrial Bank of Japan, LTCB Merchant Bank, Sanwa Bank and Tokai Bank.

"Even though the loan syndication was oversubscribed by the 21 participating banks, Astra held firmly to the $160 million sum it planned to raise," Astra said in a statement.

Astra's vice president for public relations Aminuddin said the over-subscription and the reputation of the 21 participant banks was another evidence that the international financial market remained confident in the Indonesian economy, especially in a well-managed company as Astra International.

The syndicated loan bears an annual interest of 1.2O percent above the London Interbank-Offered Rate.

Other notable banks participating in the syndicated loan as co-arrangers, lead managers, senior managers, managers and funding banks included, among others: Dai-Ichi Kangyo Bank, Mitsubishi Trust and Banking Corp., Daiwa Bank, Fuji Bank, Sumitomo Trust and Banking Co., Commerzbank Aktieengeselschaft.

Aminuddin quoted Hidetaka Tanaka, Managing Director of the Industrial Bank of Japan Merchant Bank Ltd., as saying at the signing ceremony that the loan reflected the international market confidence in the Indonesian company, especially in such highly- reputed enterprises as Astra.

" We the 21 banks participating in this facility are quite selective about entering transactions. But we strongly believe in Astra and the long-term outlook of the Indonesian economy," Tanaka was quoted as saying. (vin)