Tri Polyta signs $176m loan syndication accord
Tri Polyta signs $176m loan syndication accord
JAKARTA (JP): PT Tri Polyta, a polypropylene resins producer listed on the Nasdaq exchange in the United States, signed here yesterday a US$176 million multi-tranche loan syndication extended by domestic and overseas banks.
The company's president and chief executive officer, Henry Pribadi, told reporters after signing the agreement that the loans from 16 banks were arranged by American Express Bank, Ltd., Chase Manhattan Asia, Ltd and PT Industrial Bank of Japan (IBJ) Indonesia.
The other banks participating in the syndication include the state-owned Bank Dagang Negara, ABN Amro Bank NV, PT Bank Societe Generale Indonesia, PT Bank Sakura Swadharma, The Joyo Bank Ltd., The Asahi Bank Ltd., NV De Indonesische Overzeese Bank, The Hiroshima Bank Ltd., The Shiga Bank Ltd., PT DBS Buana Tat Lee Bank, Bank Danamon and Bank Utama.
Henry said that $50 million of the five-year loans will be used for plant and infrastructure, $30 million for revolving working capital facility and $96 million for the importation of feedstocks, chemicals, spares and additives.
The interest rate on the term loan was set at 1.75 percent above the Singapore Bank Offered Rate and on the working capital loan at 1.68 percent above the SIBOR.
The company's product -- polypropylene -- is a raw material used in plastics production.
"Our expansion project -- the third production train -- is now under construction and will be completed later this year," he said.
Henry added that the new production train, which will make the company the only plant in Southeast Asia able to manufacture impact copolymers, is scheduled for mechanical completion in June. Full commercial production is expected to start in the following two months.
The company, set up in Anyer, West Java, in 1992 with an initial investment of $250 million, will have a total capacity of 360,000 tons of polypropylene a year when the new train comes on stream.
Meanwhile, American Express Bank's managing director and area head, S. Lachlan Hough, said that his company was happy to be able to extend and arrange the loans to Tri Polyta as the company will become the largest polypropylene producer in Southeastern Asia.
Tri Polyta floated 29 percent of its shares through the Nasdaq exchange last year and raised $127 million, most of which was used to repay its debts.
The other shareholders of Tri Polyta are the Bimantara Group (32.4 percent), businessman Prajogo Pangestu (8.9 percent), Henry Pribadi (seven percent), Ibrahim Risjad (5.5 percent), Sudwikatmono (5.5 percent), Wilson Pribadi( 4.1 percent).
Last year, the company's net income increased by more than 230 percent to Rp 70.8 billion ($32 million) from 21.4 billion in 1993.(icn)