PT Holcim Indonesia Tbk has secured US$135 million loan from Cemasco BV and US$60m from two local banks. Holcim will use the loan to refinance its US$214m debt.
The management of Holcim has issued circular saying that it needs shareholders approval in a meeting on December 18.
Holcim has to refinance loan facility it has signed in 2001.
The company has planned to repay the debt to take optimum benefit from the positive development of the domestic cement industry.
Regarding with this the company has to settle some of its debts and other financial obligation on tranche A including on guarantee.
The total tranche A facility was US$214.71 million and the company will repay US$20 million on February 2008 along with the other US$194.71 million.
The repayment will be in two tranches - US$135 million using the money from Cemasco and US$60 million using the loan from two local banks.
Cemasco is an Amsterdam based financial institution having the business of providing credit facility in international trade.