PT Semen Bosowa seeks loans for expansion, Indonesia

PT Semen Bosowa is seeking a US$700m-800m loan from national and foreign banks to expand its business to 10Mta by 2015.

The funds will be used to construct at least four new cement plants, Semen Bosowa CEO Erwin Aksa told Bisnis Indonesia. Investments will be made in Bayuwangi (East Java), Cilegon (Banten), Sorong (Papua) and land expansion in Maros Regency (South Sulawesi).

Aksa said that the company has no plans to issue notes or bonds as bank interest rates both in Indonesia and abroad are still competitive compared to funds from capital markets. He noted that an IPO is possible, but the company needs to upscale its assets first.