Krakatau Steel To Receive Rp 4.2 Trillion in Loans
Wednesday, 16 May, 2012 | 16:00 WIB

TEMPO Interactive, Jakarta:Three state-owned banks - PT Bank Mandiri Tbk, PT
Bank Negara Indonesia Tbk (BNI), and Bank Rakyat Indonesia (BRI) – have agreed to disburse a syndicated loan of up to US$ 450 million (Rp 4,16 trillion) to the state-owned steel company PT Krakatau Steel.

Director of Business Banking BNI Krishna Suparto said that the offer of commercial loans is the national banks' commitment to support the construction of a blast furnace factory. "The steel industry construction is a potential business given the growing trend in global steel demand," he said at Gran Melia Hotel, Jakarta, on May 15, 2012.

The loan will be used to build the blast furnace factory.

Director of Mandiri's Corporate Banking Fransisca Nelwan Mok added that the investment assistance is hoped to boost steel production to fulfill the market demands, particularly domestic, to help expedite infrastructure development. “We believe that strengthening the manufacturing sector will drive increased investment in the real sector,”

"Manufacturing sector in our country will continue to grow in proportion to the improved economy of the public,” Fransisca added.

Mandiri's portion in the syndicated loan includes 6 years commercial credit tranche A worth US$ 100 million, including sub-limit L/C US$ 50 million and 8 years tranche B standby loan B worth US$ 200 million.

JAYADI SUPRIADIN