PT Jababeka gets US$50m syndicated loan

PT Jababeka gets US$50m syndicated loan

JAKARTA (JP): Publicly-listed industrial estate company PT
Kawasan Industri Jababeka signed an agreement yesterday on a
syndicated loan of US$50 million with 15 banks.

The Inter-Pacific Bank and Bank Bira, each of which will
provide a loan of $4 million, act both as arrangers and lead
managers of the loan syndication.

The other lead managers of the syndication include Bank
Danamon (providing a loan of $8 million), Bank Universal ($6
million) and Bank Nusa Internasional ($6 million).

The 10 other creditors are Bank Panin, Bank PSP, Bank Sumitomo
Niaga, Bank Rakyat Indonesia, Bank IFI, Bank Credit Lyonnais
Indonesia, Bank Merincorp, Bank Aspac, Bank Aseam and Bank
Tamara.

Jababeka said in a statement that the interest rate on the
loan is set at three points above the Singapore Inter-bank
Offered Rate, and that the loan will mature within five years,
including a one-year grace period.

Jababeka's president, Ismail Sofyan, said that the loan will
partly be used to finance the expansion of the company's
industrial estate in Cikarang, about 30 kilometers east of
Jakarta, by 550 hectares and to acquire two neighboring
industrial estates of PT Indocargomas Persada and PT Greenwood
Sejahtera -- 150 hectares and 80 hectares respectively.

Jababeka currently operates a 540 hectare industrial estate.

A Jababeka director, Iwan Brasali, told The Jakarta Post that
the estate's expansion will include the construction of roads as
well as drainage, water treatment and waste treatment systems.

He said the expansion will be completed within two to three
years.

Sofyan added that the loan will also be used to repay the
company's existing short-term borrowings which were raised with
the issuance of commercial papers.

He told bankers at yesterday's signing ceremony that the
demand for industrial sites will most likely increase in line
with the increase of investment approvals.

Data at the Investment Coordinating Board shows that approved
foreign investments increased to $33 billion in the 1994/1995
period from $8 billion in 1993/1994 and the domestic investments
to Rp 52.9 trillion ($22.5 billion) from Rp 50 trillion.

Sofyan said the expansion of the industrial estate, which was
established in 1990, is necessary because all of its industrial
facilities have been sold out. (kod)