Club loan for finance firm

JAKARTA (JP): PT Saseka Gelora Finance, a multifinance company which is 79.65 percent owned by Bank Niaga, signed a US$26- million club loan facility yesterday with a group of six banks, coordinated by the Singapore branch of The Sumitomo Bank Limited.

Sumitomo Bank said the other five banks included Boram Bank, Overseas-Chinese Banking Corporation Limited, Dresdner (Southeast Asia) Limited, The Development Bank of Singapore Ltd and the Singapore branch of The Dai-Ichi Kangyo Bank Ltd.

Kenji Fukuda, manager of the Singapore branch of Sumitomo Bank, said Saseka Gelora would use the loan to strengthen its working capital.

The club loan facility will mature in three years with an annual put option. The deal is supported by a strong letter of comfort from PT Bank Niaga and features a share-holding covenant requiring PT Bank Niaga to maintain a minimum stake of 55 percent in Saseka Gelora.

The loan has an annual interest rate 1.35 points above the Singapore Inter-bank Offered Rate (SIBOR) on a non-withholding tax absorption basis, and an annual interest rate 1.80 percent above SIBOR on a withholding tax absorption basis. (jsk)