Oct 1, 2010

BNP, Deutsche provide loans to Toba

Two famed foreign banks BNP Paribas and Deutsche Bank have offered US$800 million financing facilities to East Kalimantan-based thermal coal miner PT Toba Sejahtera. Toba Sejahtera is seeking the financing to acquire PT Inalum.
Toba Sejahtera Director Pandu Sjahrir said the company will pick the most profitable financing scheme to underpin take over of aluminum smelter Inalum. "We have officially obtained offers from both banks," he told Bisnis yesterday.
Toba is considering to secure 7-8 year loan facility with a benchmark interest of Singapore interbank offered rate.
The company's President Commisionner Luhut Binsar Pandjaitan said the consortium has submitted an offer acquisition for 58.12% stakes in Inalum. The government of Indonesia remains controlling shareholders of the remaining stakes.

Disclosure: No position at the stock mentioned above.

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