Adaro receives $1b commitment for landmark 10 year bank loan

PT Adaro Indonesia, a coal-mine subsidiary of IDX-listed firm PT Adaro Energy Tbk, on Monday announced a landmark 10 year bank transaction of USS$750 million.

Announcing the transaction, the Group CFO David Tendian said, "we are very thankful to the key relationship banks who supported this transaction with a commitment of $1 billion. This is the first 10 year corporate loan transaction in Indonesia and we are very thankful to our key relationship banks for the support they have provided".

Another subsidiary of Adaro Energy, PT Saptaindra Sejati, a mining contracting company, has completed a $400 million 7 year loan transaction in February 2011, which also was the first ever corporate loan of that tenure in Indonesia. Adaro Indonesia completed a 10 year $800 million bond offering in October 2009, which was the largest bond offering with a maturity of 10 years by an Indonesian corporate after the 1998 financial crisis.

Adaro Energy through Adaro Indonesia which operate a giant coal mine in South Kalimantan is one of Indonesia's top coal producer with 2011 production expected to reach 46-48 MT this year. (alex)