E. Kutai secures loan for KPC shares
Wednesday, January 14 2004 - 05:57 AM WIB
?We have signed a loan agreement with Forex, and I have asked them to remit the fund to Bank Mandiri,? Mayhudin told reporters in Jakarta. Bank Mandiri is a state owned bank.
Mahyuddin said the loan would be mature in 15 years with annual interest rate of eight percent and one-year grace period.
Last October, KPC sole owner PT Bumi Resources, signed a sales and purchase agreement with East Kutai regency to buy 18.6 percent stake in KPC for $104 million. The deal signing took place a few days after Bumi formally completed the $500-million take over of the entire KPC shares from former shareholders Rio Tinto and BP Plc.
KPC is currently in the process of offering its shares to Indonesian investors in accordance with its contractual obligations, which dictate the company to sell 51 percent of its shares to Indonesian parties after 10 years of commercial production.
KPC, one of Indonesia?s most profitable coal mining producers of whose output is for exports, operates a huge coalmine in East Kutai?s Sangatta district. (godang)