BRI provides L/C for Semen Gresik

BRI provides L/C for Semen Gresik
Published: 03 September 2009

PT Bank Rakyat Indonesia Tbk (BRI) provides the letter of credit (L/C) facility worth EUR33.3m  and US$10.4m to PT Semen Gresik Tbk to guarantee the importation payment of the major equipment of cement mill project unit IV in Tuban.

As to President Director of Semen Gresik Dwi Soetjipto, the deal on the facility contract worth IDR584bn has made all L/C needs of the cement mill unit IV construction in Tuban, East Java, covered.

The ground breaking of Tuban IV was done by State Enterprise Minister Sofyan Abdul Djalil on August 20 and is scheduled to fully operate by early 2012. The total investment for the project cost higher than IDR3.5trn

BRI jointly with Bank PT Mandiri Tbk are deemed the preferred bidders in the tender selection of L/C facility for the procurement of major equipment of Tuban IV which was participated by 14 banks. Bank Mandiri provides facility worth UER45.4 million and the L/C has been opened on August 28.

"We need external funding support to increase the production capacity under the Semen Gresik Group here for Tuban IV, Tonasa V and power plant in South SUlawesi," he said following the sign of facility contract deal yesterday.

Institutional business director of Bank BRI Asmawi Syam said the L/C facility for PT SG is in the non-cash loan with 30 months tenure.

Last month, Bank BRI has given IDR1 trillion cash loan to Semen Gresik for Tonasa V construction.

"We focus on SG project financing in a bid to make synergy among State Enterprises," he said in Surabaya yesterday.