Wynncor Bali gets $60m loan facility

JAKARTA (JP): The Bank of Tokyo has arranged a US$60 million term loan for PT Wynncor Bali, a member of PT Jan Darmadi Corporation Group of Companies which has businesses in property development.

The group announced over the weekend that the participants in the facility are the Bank of Tokyo, acting as arranger, Citibank N.A. as co-arranger and Banque Paribas and the Dai-Ichi Kangyo Bank Limited, as lead managers. Bank of Tokyo International (Hongkong) Limited is the facility agent and the Bank of Tokyo's Jakarta branch the security agent.

The six-year loan, which was signed on March 22, carries an interest rate of 1.875 percent per annum over the Singapore Inter-bank Offered Rate and will be repaid in 12 unequal semi- annual installments, with the first repayment commencing six months after the issue of the loan.

The loan proceeds will be used to refinance Wynncor Bali's existing debts, which are presently US$106 million.

Wynncor Bali is the owner of two five-star hotels in Bali, namely Grand Hyatt Bali and Bali Hyatt. In Jakarta, the Jan Darmadi Group developed the Mandarin Oriental Hotel in 1971, which was financed primarily by the Bank of Tokyo.

According to Wynncor Bali, the 387-room Bali Hyatt Hotel and the 656-room Grand Hyatt Bali Hotel were valued at over $220 million in June, 1995. Both hotels are managed by Hyatt International.

Indonesia presently has 598 star-rated hotels, with a total capacity of 53,891 rooms, according to the Directorate General of Tourism. Jakarta and Bali have the largest number of star-rated hotels in the country, accounting for 21 percent and 26 percent, respectively.

According to a statement issued by Jan Darmadi, the increase in the number of hotels has caused the occupancy rate of star- rated hotels to decline. Jakarta and Bali, however, are likely to continue being the main destinations of foreign tourists, where demand for luxury hotel rooms will keep rising. (pwn)