Saptaindra secures $300 million loan

Coal mining contractor PT Saptaindra Sejati (SIS), a subsidiary of PT Adaro Energy Tbk. has secured loans of up to US$300 million from a syndication of local and foreign banks to strengthen its capital structure and to repay existing debts.

Andre J. Mamuaya, the corporate secretary of Adaro Energy, said in Jakarta on Tuesday that the loans were provided by a syndication of banks comprising of Bank Mandiri, Bank Bukopin, Bank Ekspor Indonesia, and seven foreign banks: Sumitomo Mitsui Banking Corporation, DBS Bank, Bank of Tokyo, ANZ Bank, UOB Asia, Standard Chartered Bank and Calion Bank.

"The deal has been signed in the middle of last month,"He said.

He said that about $200 of the total loans would be used to repay maturing debts, about $80 million for capital expenditure and the other $20 million for working capital.

SIS planned to increase coal production to 22 million tons this year and 26.7 million tons next year from 12 million last year.

SIS currently has seven coal mining contract with six coal firms, including PT Adaro Indonesia with a contractual volume of 46 million tons, PT Berau Coal (15.9 million tons), PT Borneo Indobara (7 million tons), PT Indomining (6.8 million tons), PT Interex Sacra Raya (4.2 million tons) and Sumber Kurnia Buana (2.7 million tons). (*)