AKT secures $350m loan from First Gulf Bank

PT Asmin Koalindo Tuhup (AKT), a subsidiary of PT Borneo Lumbung Energi & Metal Tbk (BORN), has secured loans worth US$350 million from First Gulf Bank (FGB) of the United Arab Emirates, Investor Daily reported Monday.

AKT, one of major producers of coking coal in Indonesia, will use the loan to meet its working capital needs for exports, FGB said in a statement issued on Sunday.

The deal with AKT is one of the largest bilateral pre-export financing facility deals done by the Abu Dhabi-based bank.

Trade ties between the oil-rich Gulf states and Asia-Pacific countries is growing and the deal boosts FGB?s role in the rapidly-growing markets, George Abraham, head of corporate banking at FGB said in the statement.

?We firmly believe in Asia?s fast-paced growth and are optimistic about being a part of this progress,? he said.

FGB has opened a wholesale banking branch in Singapore since 2009 and is looking to open four new branches in Hong Kong, South Korea, China and Indonesia, the statement said.

AKT recently signed an initial agreement to supply coking coal of about 900,000 tons a year to steel producer PT Krakatau Steel Tbk (KS). The supply will be carried out beginning 2014.(*)