Astra speeds up debt payment

JAKARTA: Automotive conglomerate PT Astra International plans to speed up the settlement of its debts ahead of schedule by making a further prepayment of its US$122 million loan and bond obligations at the end of this month.

Astra finance director John Slack said the company would use internal cash to make the prepayment, with the balance of the debt after the prepayment being reduced to $125 million. The debt would be entirely matured on June 30, 2006.

"I expect we will be able to arrange a full refinancing of our obligations before the end of this year," said Slack in a press statement on Wednesday.

Under the terms of Astra's loan agreement, the company has agreed to refinance its debts before they mature. -- JP