Elnusa drops plan to issue bonds, seeks loan

Indonesia-listed oil integrated services firm PT Elnusa Tbk has dropped its plan to issue bond and instead is exploring the possibility of securing loan facility worth US$70 million to meet the need of working capital this year.

Out of the needed loans, $40 million is being negotiated with six banks, according to the company?s director of finance Santun Nainggolan.

He refused to name the six banks.

Aside from the six banks, Elnusa is also seeking more loans from banks which had provided loans to the firm, that is Bank Central Asia Tbk, Bank Danamon Syariah, Bank of Tokyo, and France's Natixis.

From January through May 2010, Elnusa got contracts worth $63.5 million, bringing the value of the contracts now being held by the firm to $246.6 million The rest of the contracts are carried over from last year. The firm targets to get contracts worth $125.27 million this year.

This year, Elnusa plans to spin off its satellite service provider PT Patrakom in the third quarter of the year. Now the firm has a 40 percent stake in the firm with the remaining shares owned by PT Telkom and PT Tanjung Mustika. (*)