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FajarPaper secures USD 240 MILLION long term loan for expansion
JAKARTA, September 2, 2013 – PT Fajar Surya Wisesa Tbk (FajarPaper) (FASW.JK) today signed USD 240 million long term loan facility with The Hongkong and Shanghai Banking Corporation Limited, Oversea-Chinese Banking Corporation Limited, PT Bank OCBC NISP Tbk., PT Bank UOB Indonesia, and Standard Chartered Bank, to finance its latest expansion plan, and to refinance its existing loan.
The new loan has a tenor of 5 years, with an option to extend for another 2 years, making the all inclusive tenor of 7 years. From the loan proceeds, USD 100 million (with a greenshoe option for additional USD 50 million available to the syndicate of lenders based on demand) will be used to finance capital expenditures, USD 120 million will be used to refinance existing syndicated loans in full, and the remaining USD 20 million will be used for general purposes.
Hadi Rebowo Ongkowidjojo, Finance Director of FajarPaper, commented: “The signing of this long term loan facility is a testament to the strong reputation our company has built among the banking community. It underscores the confidence that our bankers have in our track record.” He added, “this expansion will strengthen Company’s competitiveness to meet growing customer demand for packaging paper.
The new expansion plan is to construct a new paper machine (PM#8) at a greenfield site, in the vicinity of Surabaya, East Java province. The total project cost is estimated at USD 165 million, expected to be completed by early 2016, and will add 350,000 tonnes/year, a 30% increase of containerboard production, thereby increasing the company’s total production capacity to 1.55 million tonnes/year.
To learn more, please contact FajarPaper’s Investor Relations Department at email@example.com, or +62 21 344 1316.