Cement firm signs $150m rate notes
Cement firm signs $150m rate notes
JAKARTA (JP): Publicly listed Semen Cibinong on Friday signed a US$150 million floating rate note facility to partly finance its cement expansion project.
The company announced on Saturday that the debt facility, arranged by Bankers Trust International, carries a put option available to noteholders after five years.
The facility, lead-managed by a group of nine banks and participated in by a syndication of 20 international financial institutions, will be due in 2003.
Semen Cibinong president Hashim S, Djojohadikusumo said that the note facility will be quoted on the Stock Exchange of Hong Kong and the Luxembourg Stock Exchange.
He said that the issuer of the facility is Cibinong International Finance Company BV, Semen Cibinong's wholly-owned subsidiary incorporated in the Netherlands.
"The facility is fully guaranteed by the parent company, Semen Cibinong," he said.
Hashim said the proceeds from the issuance of the notes would be used to finance the ongoing development of Semen Cibinong's sixth production unit in Narogong, West Java.
The new production unit, which will have a production capacity of 2.6 million tons per annum, is expected to start operation in 1998.
"The transaction has been brought to the market in record time and has been priced at a very competitive rate of 1.5 points over the London Interbank Offered Rate", he said.
The $150 million facility is the second bonds issue by the company on international capital markets in the last three years. In 1993, the company issued bonds worth $170 million, the largest Eurobond issue for an Indonesian borrower at the time.
Semen Cibinong is continuing to pursue expansion plans to meet growing demand on the domestic market.
Semen Cibinong's fifth production unit, which will have a production capacity of 2.6 million tons per annum, is now under construction.
The production unit, which is expected to start operation early next year, is adjacent to the company's existing plant, with a capacity of 1.5 million tons per annum, in Cilacap, Central Java.
At present, Semen Cibinong has a total production capacity of 9.7 million tons per annum. (hen)