Borneo reduces debt to SCB

PT Borneo Lumbung Energi & Metal will pay debts of about US$120 million this year including about $70 million to Standard Chartered Bank (SCB), Kontan reported on Monday.

The company?s Finance Director Eva Novita Tarigan said in Jakarta last week that the debts which should be paid this year would include $70 million to SCB and $50 million to other leasing firms.

She said that the company, which at present had about $217 million in free cash flow, would use that internal fund to pay for the debts. Borneo received loans worth $1 billion from SCB to finance its acquisition of Bumi Plc?s shares. The debt with a maturity of five years carries interest rate of 5.6 percent above Libor.

Borneo is obliged to pay $70 million this year, $143 million and $157 million, respectively in 2013 and 2014, while in 2015 and 2016, the loan installments Borneo has to pay will be $160 million and 529 million respectively. (*)