Bakrie subsidiary gets $25m loan
Bakrie subsidiary gets $25m loan
JAKARTA (JP): PT Bakrie Brycon Indonesia, a subsidiary of
Bakrie Brothers' PT Bakrie Building Industries, secured a US$25
million syndicated loan yesterday from four foreign banks led by
American Express Bank.
The loan will be used to finance the building of its plant in
Cibitung near Bekasi in West Java to produce housing modules made
of concrete. The concrete-framed building, called Brycon Home,
will be shipped to the location after its completion.
American Express Bank Ltd (Amex) arranged the loan with
Germany's Deutche Bank AG, The Netherlands' ABN AMRO Bank N.V.
and Indover Bank.
Bakrie Brycon's commercial director, Mohamad Syahbudin, said
the loan, which would mature in one year, carried an annual
interest rate of 8.75 percent.
"The product will be used to build low-cost houses and low-
cost apartments," Syahbudin said.
He said his company would develop a low-cost apartment in
Meruya Udik, West Jakarta, as a pilot project in cooperation with
Jakarta's provincial administration, in January next year.
"With the Brycon Home system we can build a house with prices
20 percent lower than conventional houses," he said.
"This system is intended to fulfill people's needs of low-cost
houses and apartments," he said.
He added his company was in the land preparation stage, and
would begin producing in November.
"We plan to set up two factories, in Cibitung with 5,000 units
production capacity per year and a mobile plant with 2,500
production capacity per year," he said.
Bakrie Brycon Indonesia is 76 percent owned by Bakrie Building
Industries of the Bakrie Brothers Group and 24 percent by
Britain's Brycon International Ltd.
Hasan Ali, the company's finance and administration director,
said the project would need Rp 141 billion investment, comprised
of Rp 40 billion for working capital and Rp 103 billion as fixed
assets.
American Express Bank's Director of Corporate Banking,
Muhamadian Rostian, said it would contribute $7.5 million,
Deutche Bank AG $7.5 million, ABN Amro Bank $5 million and
Indover Bank $5 million. (08)