Batavindo gets $23 million loan
Batavindo gets $23 million loan
JAKARTA (JP): PT Batavindo Kridanusa, a Bukaka group
subsidiary, secured a US$23 million loan yesterday from
Indonesian and foreign banks to finance the construction its
epoxy resin plant -- the country's first.
Batavindo president commissioner Fadel Muhammad said the five-
year loan's interest rate would float 1.7 points above the
Singapore Inter-bank Offered Rate.
The loan was lead arranged and lead managed by Dresdner
(Southeast Asia) Limited with Giro Credit Bank Aktiengellschaft
der Sparkassen, the Development Bank of Singapore Limited and Hua
Nan Commercial Bank Limited acting as managers.
Other banks in the syndicate include PT Bank Ficorinvest, Bank
Nusa Internasional, Bank Universal, Bank Dagang and Industri,
Bank Dharmala and Prima Ekspress.
Fadel said construction would cost $33 million, with $10
million financed by equity.
Fadel said the plant, to be built by RHE of Germany, in West
Java would have a 7,300-ton annual capacity, comprising 3,500
tons of liquid epoxy resin, 1,500 tons of solid epoxy resin and
2,300 tons of blending resin.
Scheduled to open in mid-1998, the factory is expected to
export 40 percent of its output to ASEAN countries.
Fadel said the plant's annual capacity would be expanded to
20,000 tons by 2003.
Indonesia imported 7,200 tons of epoxy resin worth $22 million
last year, and domestic demand for it is estimated to increase 15
percent a year, Fadel said.
Derived from petrochemicals, epoxy resin is used for coatings
and adhesives in automotive, electronics, civil engineering,
electric, printing and automotive industries.
The only other ASEAN country producing epoxy resins is
Thailand, which produces up to 10,000 tons yearly.
Batavindo vice president Suharso Monoarfa said the company's
product would be highly competitive overseas because the plant's
capital costs would be cheaper than those in other countries.
Monoarfa estimated the company would sell its epoxy resin for
$4 a kilogram, compared to the current international price of
of $5.2 a kilogram.
He said Bukaka Korporindo and Fadel owned 20 percent and 30
percent of the company respectively, with several others owning
the remaining 50 percent. (01)