Astra obtains loans from foreign banks

Astra obtains loans from foreign banks

The Jakarta Post, Jakarta

Publicly listed PT Astra International, the country's largest
automotive distributor and assembler, announced on Friday it had
signed a facility with foreign lenders to help refinance the
company's debts and for working capital.

The company has signed a dual-currency revolving credit
facility worth US$170 million and Rp 600 billion (US$65 million)
with a syndicated bank consisting of 16 foreign-based lenders.
This is the company's first offshore loans since the late 1990s
economic crisis.

"This new syndicated loan will release Astra from its existing
restructured debt together with all the assets currently being
pledged. The facilities are another breakthrough for Astra that
confirms the company's emergence from the crisis," Astra finance
director John Slack said in a statement.

According to the company, the facilities were $50 million more
than what was initially on offer, and the size could have been
easily doubled had Astra so desired and not reduced the
commitments from the banks.

Proceeds from the facility will be used to refinance the
company's existing borrowings and to meet general corporate
funding requirements.

At present, Astra has a debt amounting $125 million, with a
maturing period on June 30. Under the terms of Astra's loan
agreement, the company has agreed to refinance its debts before
they mature.

The facilities, the first offshore loans for Astra since the
Asian financial crisis in late 1997, have a tenor of three years
and carry an interest rate of 2.50 percent per annum over the
Singapore Interbank Offered Rate, or also known as SIBOR.

ABN AMRO Bank N.V., BNP Paribas, Citigroup Global Markets Asia
Limited, The Hongkong and Shanghai Banking Corporation Limited,
Standard Chartered Bank and Sumitomo Mitsui Banking Corporation
acted as co-arrangers and underwriters for this transaction.

The 10 other participating banks in the transaction include
Mizuho Corporate Asia (HK) Ltd, Overseas Chinese Banking
Corporation Ltd, United Overseas Bank Ltd, HVB Corporates &
Markets, DBS Bank, Standard Bank Asia Ltd, Bumiputra-Commerce
Bank Bhd, Chinatrust Commercial Bank, Industrial and Commercial
Bank of China and UFJ Bank.

Singapore's Jardine Cycle & Carriage Ltd. owns 41.9 percent of
Astra.

Astra shares ended higher by Rp 300 to Rp 8,150 on the Jakarta
Stock Exchange on Friday.