PT Poly Fiber Industry gets $178m syndicated loan
PT Poly Fiber Industry gets $178m syndicated loan
JAKARTA (JP): Polyester chip and yarn maker PT Poly Fiber
Industry (Polyfin), a sister company of integrated textile maker
PT Artostex, will sign a Rp 423.64 billion (US$178 million)
Tuesday.
The loan will be arranged by Malaysia's Asean Bank Malaysia
Berhad, Bank International Indonesia, Panin Bank, Bank Umum
Nasional and Bank Universal.
"The loan will carry an interest rate of 10.75 percent per
annum," Artostex's chief financial officer, Donny P. Pranoto,
said over the weekend.
He said the loans would be used to refinance the company's
rupiah loans and to increase the firm's operations.
PT Polyfindo is based in Bandung and 90 percent owned by PT
Artostex and 10 percent by the Arto Hardy family.
PT Artostext, which the Arto Hardy family control, will issue
US$41 million in convertible bonds to support its expansion
projects.
PT Pentasena Securities will be the lead underwriter for the
bond issue.
The bonds will mature in five years. He did not mention the
fixed rate.
He said 60 percent of the proceeds from the bond issue would
be used to expand the company's business, 20 percent to increase
working capital and 20 percent to pay rupiah loans.
"The bonds will be used basically to strengthen Artostex's
capital structure," he said.
Donny said investors like Peregrine Direct Investment,
Peregrine Batavia Fund, Hong Kong Shanghai Bank Group's HSBC
Group and Istethmar Indonesia had committed to buying the bonds.
"The investors are expected to give a good image about our
company," he said.
He said the bond issue was a preliminary step to listing on
the Jakarta Stock Exchange next year as the bonds could be
converted to shares once the company had gone public.
He said the convertible bond issue was expected improve the
firm's debt to equity ratio from 3.8 to 1 to 1.5 to 1.
PT Artostex is an integrated textile producer with assets
worth RP 890 billion as of December 1996.
"Total paid-up capital of Artostex and Polyfindo is Rp 230
billion as of December 1996," he said.
In 1996, the firm booked a Rp 30 billion net profit on net
revenue of Rp 430 billion.
Polyfin's president, Sinatra Arto Hardy, said total production
capacity was 220 tons of polyester yarn and chips a day.
He said 15 percent of the company's products went to Artostext
and the remaining 85 percent to domestic and foreign markets. (09)