Indo Yongtex sets loan

Indo Yongtex sets loan

HONG KONG (Reuter): PT Indo Yongtex Jaya has launched a three- year US$20 million loan facility, said arranger Sanwa Bank Singapore yesterday.

The borrower, a textile company and established in 1988, is the only producer of acetate fabric in Indonesia.

Acetate fabric is used in the production of garments, in particular for ladies clothing and the lining of men's suits.

The facility, which includes a US$5 million revolving credit and a US$15 million term loan, carries a maturity of three years and pays a margin of 180 basis points over the Singapore Interbank Offered Rate.

Fees are 10 basis points for lead managers committing to US$5 million and above, eight basis points for managers committing to US$3 million and above, and five basis points for co-managers committing to below US$3 million. The commitment fee is 25 basis points per annum.

The facility is guaranteed by PT Ever Shine Textile Industries.

Proceeds of the revolving credit facility will be used for additional working capital and proceeds of the term loan will be used to finance plant expansion.