PT Semen Gresik, part of the Semen Indonesia group, has as secured a letter of credit (L/C) facility to help finance the construction of its Rembang greenfield works in Central Java, Indonesia.

The facility agreement, worth INDR1.4trn (US$122.53m), was signed on Friday by Semen Gresik president director Gatot Kustyadji and state lender Bank Mandiri institutional banking director Abdul Rachman.

Under the deal, Mandiri has agreed to issue L/Cs to Semen Gresik for the next 42 months to support the latter’s purchase of machinery or equipment from overseas.

Finance Director of Semen Indonesia, Ahyanizzaman, had earlier said the company would use internal funds to finance the Rembang plant. However, the company has now opted to obtain an L/C agreement to help make the process of importing equipment smoother.