Jun 6, 2011

Adaro seals US$750 mio bank loans

Coal miner PT Adaro Energy Tbk (ADRO) has seized 10 year bank credit facility of US$750 million with a commitment of US$1 billion for 10 years.
Based on the company, this is the first 10 year corporate loan transaction happen in Indonesia.
The lenders include Bank Mandiri, Bank of Tokyo Mitsubishi, DBS Bank and OCBC Bank, as quoted by Investor Daily today.
"We believe strong relationship with bankers and known for its good track record, Adaro definitely will not find any funding difficulty to support its business expansion onwards," said a morning note issued by Mandiri Sekuritas.
The proceeds will be used to finance its capex and in coal asset acquisitions but the detail has not been disclosed yet. Adaro currently is exploring joint provision of heavy equipment with Komatsu for the new advanced technology that uses global position system (GPS). 

Disclosure: No position at the stock mentioned above.

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