Pusri Assigns Bahana to become Financial Advisor

PT Pupuk Sriwidjaja has assigned PT Bahana Securities to become its financial advisor to prepare the financing for the development of fertilizer facility in Iran worth US$700 million.
Bahana has to prepare the financing scheme for the facility.
Initially the two companies planned to start developing the facility last year. Indonesia and Iran developed a joint venture, Hengam Petrochemical Company, in Teheran on November 11 2007. The company planned to develop a facility on ammoniac and another one on urea.
The company has secured the loan commitment of US$100 million from IDB from the total investment of US$700 million. In this regard Indonesia and Iran agreed to lobby IDB to increase the loan facility to US$200 million, so that each facility will get the initial financing of US$100 million.
Of the total equity, each country has to pay 50% or US$105 million each, while the rest US$490 will be from other parties in loan. Each party will take the responsibility of 50% to the loan.
Pusri said that the company has spent US$97 million as the initial capital for the first three years of the facilities development.