PT Indocement Tunggal Prakarsa Tbk will refinance all debt of US$340m through master facilities agreement (MFA) this year. The US$340m debt consisted of the debt from Marubeni (US$44m), Japan Bank for International Cooperation (JBIC, US$21m), New Syndication (US$125m), and HC Finance BV (US$150m).
A document the company sent to the Jakarta Stock Exchange yesterday mentioned the company will use internal cash of US$40m to pay the MFA.
After the refinancing, the portion of local currency debt of the company will increase to 56 per cent from 40 per cent presently. The portion of dollar debt will decrease to 17 per cent from 27 per cent, while the yen debt will decrease to 27 per cent from 33 per cent.
The Corporate Secretary of Indocement Sunu Widyatmoko said the refinancing process will relax the condition to repay the debt, to release the collateralized assets, and to lower interest burden. The refinancing will also reduce exchange rate risk as the revenue of the company is in local currency while the debt is on foreign currency. Sunu predict the company will face some foreign currency loss over the US$230m debt of the cement company. (Bisnis News)