Bakrie Sumatra to obtain new loan

The Jakarta Post, Jakarta

PT Bakrie Sumatra Plantations Tbk, a publicly-listed company specializing in oil palm and rubber plantations, has received an indicative approval for a US$75 million loan, according to president director Ambono Janurianto.

The syndicated loan, coming from a mix of foreign and local banks, will be used to pay off an existing $51.7 million loan that is due at the end of 2006.

"The indicative interest rate for the new loan is the SIBOR plus 2.25 percent to SIBOR plus 2.75 percent," said Janurianto, referring to the Singapore Interbank Offered Rate. "The existing loan's term is SIBOR plus 3.5 percent, so we'll save about Rp 5 billion."

He said that because the company wanted to use a substantial portion of its assets as collateral, it would need to obtain approval from its shareholders before the new loan materializes.

Janurianto, who was speaking after a general shareholders' meeting on Wednesday, expressed optimism that the company would reach its revenue growth target of between 15 percent and 20 percent, based on the company's first quarter sales of roughly Rp 150 billion (US$15.90 million).

"The results are in line with our 2005 revenue target of Rp 800 billion," said Janurianto, whose company booked sales of Rp 696 billion in 2004.

He added that the company's dividend payment of Rp 6 per share, which represents 15 percent of the company's net profit of 95 billion in 2004, was the first in six years. (002)