Muliakeramik secures $100m loan

JAKARTA (JP): PT Muliakeramik Indahraya, a ceramic tile producer owned by the publicly-listed PT Mulia Industrindo, yesterday signed a five-year term loan worth US$100 million.

Mulia Industrindo and Muliakeramik will act as the guarantors of the loans, which will be raised through Mulia Industrindo Finance BV, the company said.

"The interest is set at two different rates. If we pay the withholding tax, the rate is set at 1.22 points above the Singapore Inter-bank Offered Rate (SIBOR)," the company said in a statement. "But if the lenders pay the withholding tax, the rate is 1.55 points above SIBOR."

The statement reported that eight banks participated in the loan syndication, comprised of BA Asia Ltd., ABN AMRO Bank N.V, Credit Lyonnais, Nat West Markets, American Express Bank Ltd, Comerica Bank, Deutsche Morgan Grenfell and Sakura Merchant Bank (Singapore) Ltd.

A Muliakeramik director, Tony Sujanto, said that of the total loans, $45 million will be used to finance the construction of the company's fourth plant to produce ceramic floor tiles and the remaining $55 million to restructure its current debts.

Earlier this year, Mulia Industrindo raised funds of Rp 321 billion from the issuance of rights shares, some of which was allocated for the construction of its fourth floor-ceramic tile plant.

Tony said the company's third floor-ceramic tile plant, which is now under construction, will start commercial production in September, with a production capacity of 9.8 million square meters per annum.

"We will also complete the construction of the second plant later this month with a production capacity of 8.7 million square meters per annum," he said.

The operation of the two new units will increase the company's annual production capacity to 39.5 million square meters.

"Mulia Industrindo's combined production capacity of wall and floor ceramic tiles will reach 50 million square meters per annum when the fourth plant starts operating next year." (alo)