Chase lends RI firm

Chase lends RI firm

HONG KONG (AFP): Chase Manhattan Asia Ltd. signed yesterday a US$110 million multi-tranche facility for Indonesian packaging manufacturer PT Argha Karya Prima Industry for the firm's expansion project.

Chase Manhattan, the arranger of the loan facility, said in a statement that the amount was increased from $80 million to $100 million as a result of heavy oversubscription from 21 international and joint venture banks.

ABN-AMRO Bank NV, American Express Bank Ltd. and ING Bank also joined to fully underwrite the facility, which will also be used by PT Argha Karya Prima Industry to refinance its existing debts as well as working capital needs.

The facility comprises two tranches -- a $60 million revolving credit with annual renewal option and a $50 million medium term tranche with a one year grace period followed by nine equal semi- annual repayments.

The interest rate will be calculated at an annual rate equal to the Singapore interbank offered rate (SIBOR) plus a margin of 1.15 percent per annum for the revolving credit tranche and 1.65 percent per annum stepping up to 1.75 percent per annum starting the third year for the medium term tranche.