Kiani seeks $120m loan

Kiani seeks $120m loan

HONG KONG (Reuter): Indonesian pulp and paper producer PT Kiani Kertas has mandated three banks to arrange a US$120 million loan facility, bankers said yesterday.

They said the deal was guaranteed by the company's commissioner, Mohammad Bob Hasan.

The three arrangers are Chiao Tung Bank, Korea Exchange Bank and Sumitomo Bank.

The amortizing facility has a final maturity of three years and eight months.

It pays an interest margin of 275 basis points over the London Interbank Offered Rate.

Front-end fees are 150 basis points for banks participating in the transaction at the highest level.