ABM secures $35 million in standby loan

IDX-listed integrated energy company PT ABM Investama Tbk (ABM) has secured standby loans worth US$35 million from Standard Chartered Bank to support the company?s operation, Investor Daily reported on Monday.

ABM?s Chief Financial Officer Willy Adpradhana said in Jakarta that the lending facility would be in the form of revolving loans which could be disbursed any time the company needed them to support its operations.

He said in Jakarta on Sunday that as the loans carried relatively low interest rates of 4 percent above the London Interbank Offered rates (LIBOR), the debt payment would not really pose financial burden to the company.

Several banks have earlier expressed their commitment to provide loans to ABM. Bank DBS has for example agreed to provide $223 million, ANZ Group about $115 million and Bank Mandiri about $34.2 million and Rp 1.3 trillion.

?The loans will be used to finance business expansion and the operation of the company and its subsidiaries,? Willy said. (*)