Increasing investment leads Gresik to seek US$1.2bn loan
PT Semen Gresik Tbk seeks out US$1.2bn loan or IDR10.98 trillion to fund the company with its swelling investment up through to US$1.8bn.
The national cement company proposed its new investment to some overweas investment banks last Thursday including UBS, Credit Suisse, and Standchart Securities.
The proposal shows that Semen Gresik requires US$1.8bn investment or IDR16.47 trillion to fund the construction of two new cement factories including the power plant within the next five years.
The state-owned cement producer plans to seek external funding worth by US$1.2bn or IDR10.98 trillion. One third of the other required fund or US$600bn of IDR5.49 trillion is funded by the internal cash.
Finance Director of Semen Gresik Cholil Hasan said the soaring investment fund is only 10 per cent higher than the the formerly projected fund of US1.2bn.
"There is an adjustment of the formerly projected fund. The former price has reflected some points including inflation, but in fact it goes higher than 10 percent. Now, we have not calculated yet the figure," he said to Bisnis last week.
Cholil refuted the rumor that the company invited or selected financial advisor or underwriter candidates.
"We have processed the search of funding this year. The business expansion scheme has been approved by the shareholders in the GMS (General Meeting of Shareholders) last year. So, there is nothing new," he said.
Published under Cement News
