AKR seeks loan to build Tanjung Priok fuel terminal

JSX-listed fuel distributor and chemical producer PT AKR Corporindo Tbk is currently negotiating with several banks to raise funds to finance the construction of a fuel storage terminal in Tanjung Priok, North Jakarta, Kontan reported Thursday.

The company's President Director Haryanto Adikoesoemo said in Jakarta Wednesday that AKR in talks with Bank Central Asia, Bank Mandiri, ING Bank and ABN Amro. It would need fresh funds of between US$120 million and $130 million to finance the construction of the independent fuel storage.

He said that the loans would cover about 60 percent of the required funds as the remaining 40 percent would be obtained from the company's internal source. "We hope the loan syndication could be completed in December so that the construction of the terminal could be commenced next year," he said.

AKR is planning to cooperate with other investor to build the fuel terminal but the negotiations with potential JV partners are still ongoing and no deal had been signed so far, he said.

The facilityl which will have a capacity of 250,000 kiloliters will be built on a 15.5 hectare plot of lands in Tanjung Priok. it is expected to begin operation in 2009 and will supply the fuel needs of private fuel retailers in Jakarta and West Java. (*)