Friday, September 16, 2011

7 Banks support loan for Bakrie Plantations

PT Bakrie Sumatera Plantations Tbk, the Indonesian plantations and olechemical company own by Bakrie Group, is teaming up with seven banks to realize its US$210 million debt restructuring plan.
Those seven banks will provide loans to settle the company’s existing debt. Among the bank, there are four banks give around US$10 million loan. The new loan matures within 5 years with interest rate of 7% per year. This rate may further rise according to the market condition, to 10% of maximum.

Formerly, the company sought US$250 million of loan, maturing in five years from PT Bank International Indonesia, Credit Suisse Group AG and Raiffeisen Bank International AG. It will be used to refinance its debt.
The company expected to refinance its US$210 million of debt this month, consisting of US$185 million bonds maturing on 1 November 2011 and its subsidiaries’ debt ranging from US$20 million-US$25 million.
Next year, the company has the option to seek more loan to settle US$150 million bonds issued by its subsidiaries.

This year, Bakrie Plantations focuses to develop its oleo chemical unit as the market abroad keep growing especially in the developed country. The revenue contribution from this unit is expected to significantly soar by 20% this year compared to 1% last year. The company produced 150 ton oleo chemical per day.

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