PT Polyfin secures DM134 million loan
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)