Astra to borrow $170 from banks

Astra to borrow $170 from banks

JAKARTA: PT Astra International, an Indonesian car maker, will
sign an agreement to borrow up to US$170 million from several
banks in November, an executive with the company said Thursday.

Astra's finance director John Slack told reporters that the
loan will be co-arranged by ABN Amro Bank, HSBC, Japan's SMBC,
Citigroup Inc., and BNP Paribas S.A..

Most of the loans will be used to refinance $125 million in
existing debt by the end of the year, and as working capital, he
added. The interest rate of the new loan will be 2.5 percentage
points above the 3-month Singapore Interbank Offered Rate, or
Sibor, whereas the cost of the existing loan is 3.5 percentage
points above the 3-month Sibor.

"The new loan will reduce interest costs," Slack said.

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