PT Indorama acquires $97.5m foreign loan

JAKARTA (JP): PT Indorama Synthetics has acquired a long term loan of US$97.5 million from a consortium of foreign banks for its expansion program, which will make it the largest producer of polyester in the country by the end of 1995.

The consortium is lead by the International Finance Corporation, an affiliate of the World Bank, which is providing $30 million, along with eight Singapore-based banks extending $67.5 million.

The eight banks are Hong Kong and Shanghai Banking Corporation Ltd., Societe Generale, Mitsubishi Bank Ltd., Sakura Merchant Bank Ltd., ABN-AMRO Bank, Dresdner Bank, Sumitomo Bank Ltd. and Sanwa Bank Ltd.

Antonio H. David, regional representative of the International Finance Corporation, said in a statement made available here yesterday that the corporate loan will mature after nine years.

"Our $97.5 loan will partly finance a multi-faceted $280 million capital investment program comprising a polymer plant, a PET resin plant, a weaving plant, a specialty yarn plant and a dye-finishing plant," David said.

The loan agreement was signed in Singapore on Monday.

Indorama records sales of Rp 178 billion ($82 million) in the first six months of this year, 28 percent higher than the same period last year. Its net profit in the January-June period increased by 15 percent to Rp 31 billion. (rid)