Semen Gresik seeks IDR5 trillion loan

Semen Gresik seeks IDR5 trillion loan
07 August 2008

PT Semen Gresik Tbk seeks IDR5 trillion loan to fund the acquisition of cement company, transportation and cement paper pack company so as to support the company core business.
President Director of Semen Gresik Dwi Sutjipto said the company is studying the would-be acquired companies.
"We plan to expand business through company acquisition supporting the company core business. We predict to find IDR5 trillion fund for the expansion. The fund here is excluding the fund for cement and power plant factory development," he said to Bisnis yesterday.
The company set the investment of US$1.6bn for the cement factory construction.
"Many have asked about the funding for the expansion. We are sure the funding will not be a problem to us," he added.
Semen Gresik Finance Director Cholil Hasan said the company will not restrict to acquire cement company but also other sectors in support of cement company sales operation.
"The expansion is open. We observe transportation is very crucial and we have scheme to acquire transportation company," he said.
He cited Siam Cement in Thailand now that has some divisions supporting the core business of cement company.
Semen Gresik this year seeks external fund of US$1.1 billion in support of the US$1.6bn company capital expenditure. The total capital expenditure excludes the calculation of the soaring building material prices for the factory construction along with the soaring fuel price.
"The funding resources is through capital market and we prepare some options." The external fund is ind IDR and foreign exchange. The option is done through bonds and bank loan with five to 10 years tenure.
"Our target is to optimise the diversify the funding resources so as to get adequate fund, competitive cost, foreign exchange rate risk, liquidity, and minimum interest rate," he added.
Cholil said the external fund is necessary to meet the needs in USD denomination worth by US$857m which will be covered through loan and dollar or global bonds.
Published under Cement News