Astra ups loan to $170 Million on bank response
Astra ups loan to $170 Million on bank response
PT Astra International, Indonesia's biggest automobile distributor, increased to US$170 million the dollar portion of a dual-currency loan it's raising to refinance debt after banks offered to lend more than the company sought.
"We took more than the planned $120 million because of the good response from banks and it's comfortable to have commitment in place for possible new investments next year," John Slack, Astra's finance director, said in an interview from Jakarta.
The three-year credit is part of a facility that includes a Rp 600 billion loan arranged by ABN Amro Holding NV, BNP Paribas, Citigroup Inc., HSBC Holdings Plc, Standard Chartered Plc and Sumitomo Mitsui Banking Corp.
Astra is cutting debt as it sells more cars.
In March, it paid $80 million of debt ahead of schedule after sales in the first three months were better than forecast.
The company will use $113 million of the loan to refinance debt. The remainder of the dollar loan and the rupiah portion will be used for working capital and new projects, Slack said.
The new loan has an interest margin of 2.5 percentage points more than the Singapore interbank offered rate. Three-month dollar Sibor was last at 2.19 percent.
Eleven other banks joined the dollar portion of the loan, including: Mizuho Corporate Bank Ltd., Oversea-Chinese Banking Corp., United Overseas Bank Ltd., Bayerische Hypo-und Vereinsbank AG, DBS Group Holdings Ltd., Standard Bank Asia Ltd., Bumiputra- Commerce Bank Bhd., Chinatrust Commercial Bank Overseas Banking Unit, PT Bank Chinatrust Indonesia, Industrial and Commercial Bank of China and UFJ Bank Ltd.
In the first nine months of the year, Astra's net income rose 8 percent to Rp 3.99 trillion from Rp 3.70 trillion a year earlier on increased demand for its cars.
Astra International is almost 42 percent-owned by Singapore- based Jardine Cycle & Carriage Ltd.
The loan will be signed on Friday in Singapore, Slack said. -- Bloomberg