Tire firm gets $117m loan

Tire firm gets $117m loan

JAKARTA (JP): PT Gadjah Tunggal, a tire manufacturer listed on
the domestic stock exchanges, has secured a US$117 million
revolving credit "club" facility from a consortium of 13
international banks.

Chairman of the Gadjah Tunggal Group Sjamsul Nursalim said
over the weekend that the credit, whose agreement was signed in
Singapore on Friday, was arranged by Bank Dagang Nasional,
Indonesia's Capital Market Group.

Gadjah Tunggal, currently undertaking a major expansion
program for its radial tire production, will use the funds to
refinance existing credit facilities and strengthen its working
capital, he said.

He said the initial target for the credit facility was
actually set at $100 million but because it was oversubscribed,
the target was increased to $117 million to accommodate the
strong demand and each participating bank was allocated a portion
of $9 million.

The banks participating in the credit facility are Barclays
Bank, Citibank N.A., Credit Suisse, Development Bank of
Singapore, Dai-ichi Kangyo Bank, Dresdner Bank, Fuji Bank,
Mitsubishi Bank, Nippon Credit Bank, Sakura Bank, Sanwa Bank,
Sumitomo Bank and Sumitomo Trust. Citibank acted as the facility
and security agent.(riz)