Federal Motor gets loans

JAKARTA (JP): PT Federal Motor, a subsidiary of PT Astra International, has obtained loans of around US$100 million from a syndication of 22 foreign banks.

A spokesman for Federal Motor said that the loans would be used to refinance the previous one-year facility arranged by Chase Asia and to finance the importation of motorcycle spareparts from Honda Motor Corp. of Japan.

The loan facility, which was arranged by Japanese banks,, including Long Term Credit Bank, Sanwa Bank Ltd., and Sumitomo Bank, was well received in the market, said the company.

The lending rate of the loan facility is floated at 1.7 percent above the Singapore Interbank Offered Rates (SIBOR).

Federal Motor, which is 85 percent owned by Astra International, manufactures Honda motorcycles. (hen)