BNP Paribas to pour more money to Supra Bara
Thursday, September 8 2011 - 03:09 AM WIB
?At the present, we are conducting due diligence to asses the reserve of SBE?s coal portfolio,? President Director of BNP Paribas, Kamal Osman told reporters during the ceremony of the signing credit facility with SBE in Jakarta.
BNP Paribas expects to complete the due diligence within 8-9 months, starting this month, he said. But for sure, BNP Paribas will give more than what they have signed today of $20 million to SBE, he said, without giving the exact figure.
The tenor for the next loan may be around 3-5 years, he added without giving the interest estimation.
BNP Paribas sees the Indonesia coal industry will continue to grow as the Indonesia now is the largest coal thermal exporter with a lot of resources
Supra Bara Energi has signed a credit facility from Bank BNP Paribas in Jakarta for US$20 million. The company?s CEO Kuhan Selvaretnam said on Wednesday that the loan will be used for the company?s heavy-equipment procurement to increase the company?s coal output to 1.2 million tonnes per annum.
The company will seek more loan from BNP Paribas next year in order to support its plan to further increase its coal output to 3 million tonnes in 2013 and ramping it up to 5 million tonnes per annum in 2014.
?If, everything is on schedule, the company plans to raise more fund through initial public offering (IPO) in 2014,? Selvaretnam said.
The company is also planning to develop seven more coal mines in East Kalimantan to further boost its combined coal output to 10-12 million tonnes per annum. Three of the coal mines will start to be developed in 2013 and the remainder four follow afterwards.
The company expects to produce 1-3 million tonnes per annum of coal from each mine. (denny)