Dec 2, 2010

United Tractors seeks US$200 mio loan

Heavy equipment distributor and mining contractor PT United Tractors Tbk (UNTR) is in talks with several banks to obtain US$200 million loans particularly to finance the capital spending of its subsidiary, PT Pamapersada Nusantara.
Finance Director of UT Gidion Hasan said that such amount of funds shall cover 50% of Pamapersada’s total capital spending. United Tractors expects the fresh fund to be generated from external source.
“The remaining funds will be derived from internal source, making the total of capital spending to reach US$400 million by 2011. The fresh funds will then be utilized to purchase spare parts and units,” he said today.
According to Gidion, his company shall negotiate with 20 banks that once provided credit to Unite Tractors, such as Sumitomo, Marubeni, and Komatsu Astra Finance.
It is estimated that Pamapersada may produce 77 million ton of coal from the coal mining contract. One of the clients of Pamapersada is PT Adaro Energy Tbk. As a matter of fact, Pama seeks to produce 17 million ton coal.
Pama produced 64 million ton coal as per October while its overburden removal totaled 541 million bank cubic meter.
Pamapersada contributed IDR12.51 trillion revenue to United Tractors or nearly 44.9% of UT’s total revenue in September that reached IDR27.81 trillion.
Disclosure: No position at the stock mentioned above. 

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