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)