Citigroup Inc has lent US$30m to Lafarge to refinance the reconstruction of PT Semen Andalas Indonesia’s cement plant in Aceh that was destroyed by the tsunami in December 2004. The bridging loan to Semen Andalas Indonesia, or SAI - a part of France-based Lafarge - will be used to start the initial reconstruction process of the company’s plant prior to shareholders’ capital injection and before long-term financing from other financiers can be disbursed, Citigroup and Lafarge said in a joint statement. Cement maker SAI is currently rebuilding its packing terminal in the devastated area.
Meanwhile, Citigroup Country Officer Indonesia, Peter Eliot said: "We believe that SAI greatly contributes to Aceh’s economic growth. We hopes that this short-term loan facility, which we have both agreed on, will expedite SAI’s rebuilding process so that the company can resume its normal operations." SAI will next rebuild its integrated plant in Aceh, which is projected to have an annual capacity of 1.6Mta of cement and begin operations in early 2008.