Krakatau signs new credit agreement
Friday, July 1 2016 - 02:39 AM WIB
IDX-listed steel maker PT Krakatau Steel Tbk said it had on Monday signed an amendment and restatement of a credit agreement with several lenders for the financing of its blast furnace project.
The company said in a statement issued on Thursday that under the credit agreement, six banks and a non-bank financial institution will provide loans in two tranches: tranche A worth Rp 2.27 trillion and tranche B worth US$220 million.
The loan, which can be withdrawn in a year period and to be repaid in nine years until 2026, will be used to help finance the construction of a blast furnace complex with production capacity of 1.2 million tons of hot metal per year. The project will be developed by Capital Engineering & Research Incorporation Limited (MCC-CERI) and PT Krakatau Engineering, a subsidiary of Krakatau Steel.
The lenders include PT Bank Negara Indonesia (Persero) Tbk, PT Bank Mandiri (Persero) Tbk, PT Bank Rakyat Indonesia (Persero) Tbk, PT Bank OCBC NISP Tbk, PT Bank ICBC Indonesia, PT Bank CIMB NIAGA Tbk, and Lembaga Pembiayaan Ekspor Indonesia (Indonesia Export Financing Institution).
Editing by Reiner Simanjuntak