Holcim likely to get more loans from IFC

Holcim likely to get more loans from IFC
Published: 25 September 2008

PT Holcim Indonesia Tbk is considering to get more loans from the World Bank unit International Finance Corporation (IFC).

Holcim has asked for US$150m loan from IFC, and the figure may increase to US$200m including from the other members of the syndication. The company will seek such amount of money to develop 1.7Mt cement plant in Tuban of East Java.

The Relationship Management Director Holcim Rusli Setiawan said the company is finalising the loan figure.

"It may be higher or lower than the initial plan. We are still finalizing the plan," he said this week.

The value of the cement plan will be US$525m - US$600m, higher than US$420 million in the initial plan due to the price increase of steel. With the new plant Holcim will boost the production capacity from 7.9 million tons per annum to 10.5 million tons per annum in 2011.

He said the revenue of the company will grow by 30% this year. He added that during July and August the company’s profit has been the same as that during the first half of the year.

"The first half profit has skyrocketed by 56 times to IDR341bn from IDR6bn in the same period of last year."

He added the revenue was IDR2.05 trillion compared with IDR1.6 trillion in the same period of 2007.

"The domestic sales increase by 24% to 2.6Mt, while the export sales contribute 19% to the total sales. The export declined by 45% to 0.6Mt." (Bisnis/mmh)