Straits Asia signs $300m loan

Singapore exchange-listed coal miner Straits Asia Resources Limited said on Tuesday it has signed US$300 million term and revolving loan agreement with Standard Chartered Bank (SCB).

The loan will be used to refinance an existing $230 million bridge loan that is due for repayment by 17 December 2008 and provide additional funding for Straits Asia for its expansion and development plans, the company said in statement.

Macquarie Capital Singapore Pte Limited acted as financial advisor.

The loan is a fully committed 18-month loan and comprises a term loan facility of $250 million and a revolving working capital facility of $50 million, it said

Straits Asia, which runs Sebuku coal mine in South Kalimantan and Jembayan coal mine in East Kalimantan, is a unit of Australian mining firm Straits Resources Limited. The company is eyeing 20 million tonnes per annum (MTPA) in ?medium term? from its two producing mines. (denny)