PT Polyfin secures DM134 million loan
JAKARTA (JP): Polyester chip and yarn maker PT Polyfin Canggih, a sister company of integrated textile maker PT Artostex, has secured a DM 134 million (US$77.9 million) loan to finance its expansion program.
Polyfin president Sinatra Arto Hardy said Thursday the loan, the second lending facility signed by the company last week, would be provided by IKB Deutsche Industriebank AG, a German bank.
"The money will be used to finance our expansion program," Sinatra said.
He added the Bandung-based firm would buy more machinery from German firm Zimmer AG to increase the production capacity to 80,000 tons of polyester chip and yarn from 70,000 tons annually.
He said the loan disbursement could be either in the U.S. dollar or Deutschemark.
If the loan is provided in U.S. dollars, the interest rate will be 1.05 percentage points above the London Inter Bank Offered Rate (LIBOR). "In marks, the interest rate will be 1.05 percentage points above the Frankfurt Inter Bank Offered Rate (FIBOR)," he said.
The loan will mature in 10 years.
IKB senior vice president Stefan Renshinghoff said the bank initially planned to invite other banks to provide the loan to PT Polyfin.
"But, we later decided to take the loan alone as we are upbeat over the firm's performance as well as its market prospects," he said.
According to Renshinghoff, IKB has arranged credit facilities to 50 percent of the German capital goods exported to Indonesia.
Sinatra said Polyfin's unaudited sales revenues reached Rp 430 billion ($182 million) last year, compared to Rp 423 billion in 1995.
As in the past, Sinatra said, Polyfin would export about 55 percent of its products to Europe, Asia, the U.S. and South America.
Sinatra was optimistic worldwide demand for oil-based polyester would rise as cotton-base fiber would become more expensive. He estimated the worldwide demand for polyester grows about 5 percent annually.
Polyfin is 90 percent owned by PT Artostex and 10 percent by the Arto Hardy family.
On Tuesday, Polyfin signed a $178 million syndicated loan which was arranged by Malaysia's Asean Bank Malaysia Berhad., Bank International Indonesia, Panin Bank, Bank Umum Nasional and Bank Universal.
It announced a plan Tuesday to issue a $41 million mandatory convertible bond. PT Istethemar Finas Securities and PT Pentasena Arthasentosa will act as the arrangers for the bond offer.
Sixty percent of the proceeds from the bond issue will be used to expand the company's business, 20 percent to increase working capital and 20 percent to pay rupiah loans. (jsk)