Bakrie Electronics secures $50m loan

Bakrie Electronics secures $50m loan

HONG KONG (Reuter): PT Bakrie Electronics Co, a telecommunication joint venture between the Bakrie Group and PTT Telecom BV of the Netherlands, has successfully completed a four- year US$50 million term loan facility, said arranger Sakura Merchant Bank Singapore.

The facility pays 150 basis points over Singapore Interbank Offered Rate to lenders who can absorb Indonesian withholding tax while lenders who are unable to absorb withholding tax will receive a Standby Letter of Credit fee of 105 basis points over SIBOR. There is a put option at the end of year three.

Fees are 50 basis points for lead managers, 37.5 basis points for co-lead managers and 25 basis points for managers.

Arrangers and underwriters are BA Asia, Mitsubishi Trust & Banking Corp's Singapore Branch, Sakura Merchant Bank (Singapore) and Tokyo-Mitsubishi International (Singapore).

Lead managers are Asahi Bank's Singapore Branch, Bank of America NT & SA, Bank of Tokyo-Mitsubishi's Singapore Branch, Industrial Bank of Japan's Singapore Branch, Mitsubishi Trust & Banking Corp's Singapore Branch, Mitsui Trust & Banking Co's Singapore Branch, Rabobank's Singapore Branch/PT Rabobank Duta Indonesia and Sakura Bank's Singapore Branch.

Co-lead managers are Hua Nan Commercial Bank's Singapore Branch, Sumitomo Trust & Banking Co's Singapore Branch and Toyo Trust & Banking Co's Singapore Branch.

Signing is set for Friday in Singapore.

Proceeds will be used primarily to refinance the borrower's existing onshore bank borrowings.