Bank Negara Indonesia to facilitate $433-M syndicated loan

Rp 4.17 trillion worth of syndicated loans.

This will be availed by Krakatau Steel with Bank Negara Indonesia acting as the syndicated loan agent.

In this role, BNI represents the interests of all the syndicate participants until the loans mature.

The total loans of Rp 4.17 trillion or $433 million consist of Rp 2.27 trillion worth of commercial loans from Indonesia banks,namely Bank Negara Indonesia, Bank Mandiri and Bank Rakyat; $200 million from three Chinese banks — Industrial and Commercial Bank of China, HSBC and China Development Bank.

Krakatau, the biggest steel maker in Indonesia, will use the Rp 4.17 trillion to help finance its blast furnace plant in Cilegon, Banten, BNI management said.

The plant will have the capacity to process 1.2 million tons of hot metal and slabs a year and is scheduled to finish construction by the fourth quarter of 2014.

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