PT Indorama secures US$175 million in loans
PT Indorama secures US$175 million in loans
JAKARTA (JP): Publicly listed polyester maker PT Indorama
Synthetics has obtained syndicated loans worth US$175 million
from 13 international banks.
The company said the agreement for the loans, which mature in
three years, was signed in Singapore yesterday would be used to
refinance existing borrowings and used for corporate purposes.
The loan's interest rate is 77.5 basis points over the
Singapore Inter Bank Offered Rate (SIBOR) for Tranche A, worth
$46 million, and 122.5 basis points for Tranche B, worth $129
million.
There is an option for the loans maturity to be extended two
years.
The interest and fees is 0.965 percent over SIBOR for Tranche
A, which has a spread level of less than 1 percent making it a
benchmark deal for an Indonesian industrial firm, the company
said.
The loan arrangers included Bankers Trust Company of Hong
Kong, Deutsche Morgan Grenfell Ltd of Singapore, Fuji Bank
International Indonesia, HSBC Investment Bank Asia Limited of
Singapore and ING Barings.
There were 13 bank in the consortium including banks from
Japan, Taiwan, Singapore, Hong Kong, Indonesia, the Netherlands,
Italy and India. For six of the banks it was their first dealing
with Indorama.
"The overwhelming response from the banks for the syndication
indicates the banks' interest in Indonesia in general and
Indorama in particular," the company said.
PT Indorama Synthetics, which the Asian Institute of
Management named the best managed company in Indonesia in 1996
and named the best in investor relations and treatment by Asia
Money, makes polyester filament yarns, polyester staple fiber,
PET resin, seven blended yarns and polyester fabrics.
The firm recorded a Rp 122 billion ($51.5 million) unaudited
net profit in 1996, up from Rp 120.32 billion in 1995.
Indorama's sales turnover was about Rp 678 billion in 1996, up
from 1995's Rp 675.9 billion.
The European market makes up 57 percent of total exports of
which Asia and the Middle East make up 30 percent, Australia 4
percent and others 9 percent.
The company plans to invest $350 million between 1997 and 1999
on expansion projects, of which $135 million will be used to
expand the company's plants in Purwakarta, West Java. (09)