Mar 1, 2011

Trans Corp seals US$450 million loan

Nine foreign banks intends to channel a syndicated loan facility worth US$450 million for Trans Corporation to develop its business.
Chief Executive Officer (CEO) Chairul Tanjung said the nine banks include JP Morgan, Citibank, Credit Suise, HSBC, Standard Chartered, and RBS.
“All of them are foreign bank and the signing of the syndicated credit will be done in the third week of March,” he said today.
He explained the loan worth US$450 million has a tenor of 5 years. However, he is not willing to mention the interest rate. "Importantly, [interest rate] it is good," he said.
Chairul said that the loan will be used to develop Trans Corp’s business, including a plan to construct a new building in Bekasi, West Java.
Trans Corp will not issue bonds or seek capital through an initial public offering (IPO) with the presence of this credit.
For IPO, as he said, it will be conducted when market capitalization of Indonesia Stock Exchange (IDX) grows to Rp10,000 trillion.
"We have not yet known about the funding for IPO, it depends on how much I need and the need of market," he explained.

Disclosure: No position at the stock mentioned above.  

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