Krakatau to get loan from German lender
Thursday, March 19 2015 - 01:33 AM WIB
IDX-listed steel maker PT Krakatau Steel Tbk is set to soon obtain about US$273 million of loan from Germany?s Export Credit Agency to help finance the construction of a hot strip mill in Cilegon, Banten, Kontan reported on Thursday.
The paper quoted Krakatau Corporate Secretary Iip Budiman as saying that the company would put its assets including land equipment, and machinery worth $378.4 million as collateral. The company plans to seek shareholders? approval in April for putting up assets as collateral.
He said that total investment for the new steel plant project, which is designed to have a capacity of 1.5 million tons of hot rolled coil (HRC) per year, is estimated at $300 million. Once realized, Krakatau?s HRC production capacity will increase to 3.9 million tons per year. (*)