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.