Realisation of Semen Gresik loan delayed

Realisation of Semen Gresik loan delayed
Published: 13 January 2009

The realisation of dollar-denominated loan worth US$600m by PT Semen Gresik Tbk is delayed from the end of 2008 targeted previously. The company at the moment is still finalizing the loan, which will be used as the company’s working capital for the next four years.

"We are still finalizing the dollar-denominated loan," revealed President Director of Semen Gresik Dwi Soetjipto to Bisnis yesterday.

On December 19, 2008, Dwi once said two foreign bank consortia were ready to lend US$600 million or IDR6.6 trillion to Semen Gresik following IDR6.3 trillion worth of loan provided by Bank Mandiri.

Dwi said the loan was needed to meet the US$1.3 billion worth of the company’s financing need for the next four years.

"Before the end of 2008, we will appoint one of the two consortia to meet our need for US$600 million of dollar loan. The Bank Mandiri syndication will involve big banks in Indonesia," he said. (Bisnis, December 20, 2008)

However, Dwi expressed that the company was optimistic to be able to spend US$371m worth of capital expenditure this year.

On January 30, 2009, the company will ask for approval from the shareholders general meeting to the change in the plan from the development of a 410 MW power plant worth US$570m to the development of a 70MW power plant worth US$110m.