Pama to get US$425 million in loan from bank syndication

Mining contractor PT Pamapersada Nusantara (Pama), a wholly-owned subsidiary of JSX-listed heavy equipment distributor PT United Tractors Tbk will sign today a US$425 million loan deal with a syndication of 23 banks to finance debt payment and expansion program , Bisnis Indonesia reported Monday.

 

The bank syndication is led by six arrangers  DBS Bank Ltd, The Hong Kong Shanghai Banking Corporation Ltd, Mizuho Corporate Bank Ltd, Standard Chartered Bank Ltd, Sumitomo Mitsui Banking Corporation and United Overseas Bank Ltd.

 

“Initially, we only proposed US$350 million. However, learning that the bank syndication involving many banks, we decided to ask for more (loan),” Pama's Director of Financial Affairs Christina Hiu said in Jakarta last week.

 

Christina said that the syndicated loan is made up of a long-term loan worth US$290 million with the maturity of five years and rolling loan of US$135 million with the maturity of two years.

 

According to Christina, $222 million of the loan will be used to repay the company’s debt and the remainder as capital expenditure and working capital.

 

Pama is Indonesia  ’s largest mining services provider. The company’s existing clients include PT Adaro , PT Indominco Mandiri, PT Kaltim Prima Coal, Tambang Batubara Bukit Asam, PT Multi Harapan Utama, PT Dasa Eka Jasatama, and PT Kideco Jaya Agung. (*)