Four companies raise $183 in loans from overseas banks
JAKARTA (JP): Royal Oriental Ltd., a subsidiary of the publicly listed Duta Pertiwi, and three subsidiaries of the Ongko Group this week raised around US$183 million in loans from three syndications of overseas banks.
The loan facility for Royal Oriental is worth $60 million, while Bank Umum Nasional (BUN), one of the Ongko Group's subsidiaries, obtained around $40 million.
The Ongko Group's other two subsidiaries, Bunas Finance and Der Kwei Kemasan Indah, raised $30 million and $31 million respectively from different groups of overseas banks.
Duta Pertiwi, a member of the widely diversified Sinar Mas Group, announced yesterday that the loan will be used by Royal Oriental to partly finance the construction of a 32-floor office building on Jl. Thamrin, Central Jakarta.
The $60 million loan facility was provided by a Singapore foreign bank syndicate, consisting of Fuji Bank Limited Singapore, Daiwa Bank Limited Singapore, Hokkaido Takushoku Bank Limited Singapore, the Singapore branch of Mitsubishi Trust & Banking Corp. of Japan and the Sakura Bank Limited Singapore.
The loan will mature in seven years and carry an annual interest rate of three percentage points above the Singapore Banks Offered Rates (SIBOR) during the construction of the building, and 2.7 percentage points above SIBOR after construction.
"The loan commitment reflects the confidence of foreign banks in company," said Muktar Widjaya, a director of Duta Pertiwi.
Muktar said the office building, to be named BII Plaza, will be used as the headquarters of the Sinar Mas Group.
The $40 million loan for BUN, also provided by a Singapore bank syndicate, will mature in 25 months and carry an annual interest rate of one percentage point above three- and six-month SIBOR.
Financial structure
Bunas Finance will use its $30 million-loan facility, also obtained from Singapore-based foreign banks, to strengthen its financial structure.
Cornelius Henry, the corporate secretary of Bunas, said that the debts will carry a single interest rate of 1.25 percentage points above the three- and six-month SIBOR during the loan's 24- month maturity period.
"The fresh debt is the fourth loan facility raised by Bunas from overseas banks this year," he said, adding that last month, Bunas raised around $22 million in loans, also from a bank syndicate in Singapore.
Der Kwei Kemasan Indonesia, another subsidiary of the Ongko Group, will use its fresh loan of around $31 million to increase the production capacity of its cosmetics factory.
The company, partly owned by Der Kwei Enterprise of Taiwan, produces a number of cosmetic products with licensing from international cosmetics manufacturers.(hen)