Indocement repays remaining debt to HC Finance

Indocement repays remaining debt to HC Finance
Published: 17 March 2009

Indonesia’s second largest cement maker PT Indocement Tunggal Prakarsa said it has repaid its remaining debt of US$50m to HC Finance BV.

"The company, therefore, needs fresh fund to refinance itself as it had used internal fund to repay the debt last week," corporate secretary Dani Handayani said.

Preparations have been made to seek bank loans , Dani said giving no figure. Originally, Indocement had a debt of US$150m to HC Finance BV, which is its majority 56.14 per cent shareholder, but US$100m of the debt already repaid last year. Indocement is building a new cement factory in Cirebon, West Java, expected to be operational in the second half of this year. The new factory will increase its annual production capacity to 18.6Mt from 17Mt at present, the newspaper Bisnis Indonesia said.