Toba Bara secures $75m revolving loan
Friday, March 21 2014 - 09:50 AM WIB
IDX-listed coal firm PT Toba Bara Sejahtra Tbk announced on Friday it has signed a four-year US$ 75 million revolving loan facility agreement arranged by three leading international banks: BNP Paribas; Citigroup; and Standard Chartered Bank.
The firm said the loan facility bears terms and conditions and interest rate that are as competitively structured and priced as those laid down in its previous loan facility back in 2011, given the then high coal price environment. Furthermore, the new facility compares favorably with the previous one as reflected by the larger facility size of $75 million than the previous $70 million, while the tenor is at four years, longer than the previous tenor of three years.
With more capital accessibility and longer tenor flexibility at its disposal, this revolving loan facility grants the company usage of such proceeds for loan and CAPEX refinancing, while enhancing its ability to further boost its on-going expansion program of growing production with sustainable profitability margins.
Pandu Syahrir, the company?s Chief Financial Officer stated ?The Company?s ability to secure such favorable terms and conditions with interest rate still competitively priced at LIBOR plus applicable margin p.a. underscores the continued confidence demonstrated by our banking partners to the Company, particularly during this challenging coal environment today?.
To date, the company has installed production capacity of 16 million tons p.a., up from 13 million tons p.a. last year. The company also successfully integrated its three adjacent concessions by completing its hauling road construction and connecting between them ahead of schedule. This integration is aimed at enhancing synergy and improving cost efficiency among the company?s three operating subsidiaries of PT Adimitra Baratama Nusantara (ABN), PT Indomining (IM), and PT Trisensa Mineral Utama (TMU).
Editing by Johannes Simbolon