RI paper firm gets $50m loan

RI paper firm gets $50m loan

JAKARTA (JP): The Hong Kong-based Citicorp International Ltd. announced yesterday that a syndication of banks have approved a US$50 million loan for a paper board manufacturing firm, PT Fajar Surya Wisesa, to finance its expansion project.

A Citicorp director, Clarence T'ao, said in a statement made available here yesterday that Citicorp acted as the main arranger of the loan facility and Citibank NA's Jakarta office acted as its security agent.

"The facility was oversubscribed with 11 banks participating," he said.

The participating banks included Bank Bumiputra Malaysia Berhad, PT Bank Credit Lyonnais Indonesia, Bank of Tokyo Ltd., Citibank NA's Jakarta office, the Development Bank of Singapore Ltd., Hongkong and Shanghai Banking Corporation Ltd., Netherlandse Financierings Maatschappij voor Ontwikkelingslanden NV, PT Bank LTCB Central Asia, Deuthsche Bank AG in Jakarta, PT IBJ Indonesia Bank and Kansali Osake Pankki in Singapore.

T'ao said the loan will be used to finance the installation of new production machinery for Fajar Surya Wisesa and the provision of a power generation facility.

The company's president, Winarko Sulistyo, said recently that its expansion plan is expected to increase its output capacity from 220,000 tons of paper and boards per annum at present to 500,000 tons by the end of this year. (fhp)