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)