Semen Indonesia is to provide a IDR5trn loan (US$421.76m) to subsidiary Semen Gresik to partly finance the latter’s new cement plant in Central Java, according to an announcement posted on the Indonesia Stock Exchange.
The loan agreement, which amounts to IDR5.07trn when taking interest into account, was signed on Monday.
Semen Gresik is constructing an 8000tpd greenfield works situated just outside the city of Rembang in the northeastern part of central Java. The new factory is expected to commence operation in 2016.
Semen Gresik previously secured a letter of credit (L/C) facility worth IDR1.4trn from Bank Mandiri in March, also to help finance the construction of the Rembang facility.