Kalimantan bauxite refiner signs $330m loan deal
Wednesday, March 5 2014 - 08:36 AM WIB
IDX-listed mining firm PT Cita Mineral Investindo Tbk reported on Wednesday that its associated company PT Well Harvest Winning Alumina Refinery (WHW) has signed loan facility agreement with a consortium of lenders.
Under the deal, WHW will receive US$330 million loan extendable to $400 million to finance construction of alumina smelter the company plans to build.
DBS Bank Limited, Oversea-Chinese Banking Corporation Limited, PT Bank OCBC NISP Tbk acts as Mandated Lead Arranger and Bookrunner, Bank of China Jakarta Branch as Lead Arranger and PT Bank DBS Indonesia as Agent.
The loan will mature in 12 months with interest rate of LIBOR plus 3.55% to local lender and LIBOR plus 3.25% to overseas lenders.
The loan is guaranteed by China Hongqiao Group Limited and Winning International Group Pte Ltd.
WHW, which is 25 percent owned by Cita Mineral, and 75 percent owned by China Hongqiao Group Ltd, is in the process of constructing a US$1 billion smelter in Kendawang, Ketapang Regency, West Kalimantan to process bauxite into alumina.
The first phase of one million tons a year capacity is expected to start operation in 2015, while the second 1 million-ton per year capacity in 2017.
The alumina to be produced by the smelter will be supplied to domestic buyers particularly for aluminum producer PT Inalum in North Sumatra.
Editing by Johannes Simbolon