Well Harvest seeks loans for expansion of alumina smelter
Wednesday, June 15 2016 - 03:48 AM WIB
Well Harvest Alumina Refinery, which is set to soon operate a smelter grade alumina refinery in Ketapang, West Kalimantan, plans to raise up to US$820 million loans to help finance the expansion of the refinery.
This was said by IDX-listed PT Cita Mineral Investindo Tbk, which owns 30 percent shares in Well Harvest, in a filing with the exchange on Tuesday. Cita said that it has put up its entire Well Harvest shares estimated to worth US$51.11 million as collateral for the loans.
The company added that other Well Harvest shareholders including China Hongqiao Group Ltd (55%), Winning International Group Pte Ltd (10%), and Shandong Weiqiao Alumunium & Electricity Co. Ltd (5%) have also agreed to put up their shares as collateral.
Cita, however, said that they have to sign agreement with creditors for the planned loan facilities, which would comprise of senior secured commercial term loan (SCTLF) worth $800 million, and $20,000 in working capital facility.
It said that the SCTLF will be divided in two tranches, the first tranche A worth $450 million, and the second tranche B worth up to $300 million. Cita added that Well Harvest will repay $350 million worth of SCTLF in the form of bridging loan facility for its alumina smelter project.
Well Harvest plans to build a total 4 million tons per annum alumina smelter in Ketapang in four phases. Construction of the first stage of 1 million tons per annum has been recently completed, with commercial operation slated to start in July 2016.
Editing by Reiner Simanjuntak