Deutsche Bank pleges $1 billion loan for TPPI
Friday, April 15 2011 - 02:40 AM WIB
The loan committment was made by the bank?s head for corporate and investment, Anshu Jain, during a meeting with Coordinating Minister for the Economy Hatta Rajasa during a meeting in Jakarta on Thursday.
Amir Sambodo, a special staff of the coordinating minister, said that the loans would be used to meet TPPI?s financial obligation to oil and gas upstream sector regulator BPMIGAS, state owned oil and gas firm PT Pertamina, and Perusahaan Pengelola Aset (an agency owned by the Ministry of Finance). The debts mature in 2014.
Amir said that part of Deutsche Bank?s loans would be also used to improve the company?s equity condition to enable it to operate at 100 percent capacity. "At present, TPPI operates only at 60 percent capacity,? he added.
The Jakarta Post recently reported that TPII, which operates an integrated petrochemical refinery in Tanjung Awar-awar, Tuban, East Java, has offered Pertamina 13 percent additional equity as the payment of its $350 million debt to the state oil company.
According to the Post, Pertamina currently has a 15 percent stake in TPPI, while PT Tuban Petrochemical Industries (Tuban Petro) has a controlling stake of 59.5 percent. The remaining 25.5 percent is owned by foreign shareholders. (*)