PT Barito Pacific Tbk (IDX: BRPT) obtained a loan facility from Bangkok Bank Public Co. Ltd., amounting to US$252.70 million - Photo by Indo Tenaga Raya

JAKARTA (TheInsiderStories) – Conglomeration firm, PT Barito Pacific Tbk (IDX: BRPT) obtained a loan facility from Bangkok Bank Public Co. Ltd., amounting to US$252.70 million. The loan must be repaid within 60 months from the first drawdown date.

The management said, that all funds obtained from the lender will be used as part of the company’s contribution to the financing structure provided to the unit, PT Indo Raya Tenaga, an electricity generation and supply. On July 20, the company provides loans to its subsidiary with worth of $252.75 million with an interest rate of 6.18 percent per year.

According to Barito, this loan was provided to constructs an ultra-critical steam power plant with a capacity of 2×1,000 megawatts (MW) in Suralaya, Banten (Java 9 and 10). The parent company will distributes these loans in two stages.

The first phase will be awarded at $183.90 million and the second phase will be valued of $68.85 million. 49 percent of the power plant company is owned by Barito Pacific and another 51 percent is owned by Indonesia Power, a subsidiary of PT Perusahaan Listrik Negara (PLN).

The loan is secured by a pledge on the dividend receipt account in the name of Barito. The second guarantee is pawning on the Debt Service Reserve Account in the name of the company, and the next guarantee is the pledge on shares owned by the company in chemical firm, PT Chandra Asri Petrochemical Tbk (IDX: TPIA).

The company owned by Prajogo Pangestu was founded on April 4, 1979, under the name PT Bumi Raya Pura Mas Kalimantan. Its core business are power generation and petrochemical production, with industrial assets in renewable and resource-oriented sectors with significant growth potential through business diversification and vertical integration.

In 2007, Barito obtained majority ownership in Chandra Asri and in 2008 acquired PT Tri Polyta Indonesia Tbk, which was later merged into Chandra Asri in 2011. The unit is the largest single integrated petrochemical company in Indonesia with an installed production capacity. currently at 3,458 kilo tones per annum.

In June 2018, the company also acquired majority ownership in PT Star Energy, the largest geothermal company in Indonesia and the third largest in the world, which operates 875 MW of geothermal installed capacity. The multinational firm also has a joint venture with one of the subsidiaries of PT Indonesia Power, a wholly owned of PLN, to develop Jawa 9 and 10, one of the power plants.

US$1: Rp14,500

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