Release: Antam to receive US$121m in loans from BCA and Bank Mandiri

(Jakarta, December 20th, 2006) ? PT Antam Tbk is pleased, to announce it has signed two loan agreements worth US$121 million with PT Bank Central Asia Tbk (BCA) and PT Bank Mandiri Tbk.

BCA will provide US$71 million and Bank Mandiri will provide the remaining US$50 million of the credit facility. The loans will help fund refinance the US$171 million still outstanding from the notes issued by Antam?s subsidiary, Antam Finance Limited (AFL) in September 2003.

The investment credit facilities both have a repayment period of five years aid each bears an interest rate of 3 months SIBOR+1.5%. The current rate is 5.4%.

At the time of issuance the US$100 million in notes was the most optimal financing of the largest part of the funding required for the ferronickel expansion project, FeNi III.

Antam announced earlier this month it would repay holders of the outstanding notes issued by AFL 10 months earlier than planned due to the cancellation of the Avoidance of Double Taxation treaty between Indonesia and Mauritius, where AFL is incorporated.

The bonds were due for repayment on September 30, 2010 and could be redeemed in September 2007. The cancellation of the DTA caused the rate of withholding tax increase from 10% to 20%, higher than expected. Under the terms of the notes Antam can repay early for tax reasons. (end of release)