Aug 4, 2011

Mandiri cs win US$1 bio Antam's deal

The state-controlled nickel and gold miner PT Aneka Tambang Tbk (Antam)  finally has sent a mandate letter to consortium of lenders led by PT Bank Mandiri Tbk (BMRI) which arrange and seek US$1 billion financing for Halmahera's ferronickel project at Buli, North Maluku.
A source close to the deal said a consortium led by PT Bank Mandiri Tbk has won the financing deal. 
"The financing structure will be US$350 million through the issuance of rupiah denominated bonds and the remaining of project financing," the source said.
Previously anout 26 banks, the sources said, had set up three consortium and one individual foreign bank. The consortium is led by Bank Mandiri, Bank Negara Indonesia, Bank Central Asia, and the invidual bank Barclays Capital.
Bank Mandiri teamed up with Goldman Sachs, Deutsche Bank, Bank Rakyat Indonesia,  Sumitomo Mitsui Banking Corporation, and Standard Chartered Bank.
Bank Negara Indonesia led several members such as Bahana Securities, ANZ Bank, BNP Paribas, Bank of Tokyo Mitsubishi, CIMB, and Bank of America-Merrill Lynch.
Bank Central Asia led a consortium of Credit Agricole, DBS Bank, HSBC, and JPMorgan Securities.
Barclays is stand-alone bank has also proposed its financing structure.
During the proposals submission, one consortium led by BCA was late to submit their proposals.
"Antam might drop the BCA consortium. But it depends on Antam. But, if BCA was dropped, five banks would be unable to proceed the beauty contest."
Antam expects to complete the project financing, select EPC contractor, and start of construction at end of this year.
The company aims to spend US$369 million of capital expenditure this year, consisting of routine capex of US$52 million and US$317 million development capex.
 
Disclosure: No position at the stock mentioned above. 

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