PT Pacific Fibretama gets US$42m loan

JAKARTA (JP): PT Pacific Fibretama Corporation, owned jointly by the Tirtamas and Panwell groups, has secured a US$42 million syndicated credit facility from local and foreign banks to produce polyester fiber and chips.

Executives of Pacific Fibretama and the participating banks signed the loan agreement here yesterday.

The loan was arranged by Bank Internasional Indonesia (BII) and participated in by Bank Panin, Hong Kong Bank's Jakarta branch, Bank Dharmala, Inter Pacific, Bank Danamon and Bank Niaga.

Pacific Fibretama president Honggo Wendratno said the company would use the secured funds to finance the construction of a polyester fiber and chip plant in Serang, West Java.

The plant will be able to make 91,000 tons polyester fiber and 14,000 tons of polyester chips a year.

Honggo said construction started a few months ago and should be completed in the second quarter of 1998, and start production in the third quarter.

The total project cost will be $153 million, 55 million from equity, $45 million from German export credit agency Hermes and the remaining US$53 million from bank loans.

Pacific Fibretama is 50 percent controlled by the Tirtamas Group and 50 percent by the Panwell Group. The Tirtamas is controlled by Hashim Djojohadikusumo, while Panwell is owned by Joseph Gondobintoro.

BII managing director Yuli Soedargo said the loan would mature in six years, with a two year grace period.

It carried an annual interest rate of three percent over the Singapore Inter-Bank Offered Rate.

BII was committed to disburse US$7.5 million, Bank Panin $9 million, Hong Kong Bank $5 million, Bank Dharmala $7.5 million, Inter Pacific $5 million, Bank Danamon $5 million and Bank Niaga $3 million.

Yuli said that this year his bank had arranged Rp 5.5 trillion (US$2.25 billion) in loans, including Pacific Fibretama's.

Last year, BII arranged US$1.9 billion in loans. (rid)