Indah Kiat gets offshore loan

Indah Kiat gets offshore loan

HONG KONG (Dow Jones): Indonesia's Indah Kiat Pulp & Paper
Corp is lining up the country's first syndicated loan since the
financial regional crisis, marking a turnaround in bank attitudes
toward the beleaguered Southeast Asian nation.

Indah Kiat is expected to raise as much as US$270 million
through a bank loan guaranteed by majority-owner Asia Pulp &
Paper Co., said arranger BA Asia Ltd.

The loan refinances an existing US$400 million five-year term
loan facility, which carried a three-year investor put option
dated April 2000.

This week's ratings upgrade from Moody's of parent APP and its
subsidiaries is expected to help strengthen interest in the loan,
said BA Asia.

The extension loan, launched in early February, contains one-
year and two-year tranches. So far, a total of $200 million have
been committed, with banks providing about two-thirds intended
for the two-year tranche.