JAKARTA (TheInsiderStories) – PT FKS Multi Agro Tbk (IDX:FISH) said its subsidiaries have signed loan syndicated deal worth US$200 million from a number international banks to fund warehouse, logistic and industrial zone projects. The loan facility could be increased to $240 million.
FKS Multi Agro said it will pledge its assets as collateral for the syndicated loan facility. The move to pledge the company’s assets as collateral is pending on the approval of the company’s shareholders as the loan value is 290 per cent of the company’s equity as of end 2016.
The banks that have agreed to provide loan are as follows PT Rabobank International Indonesia, BNP Paribas Singapore Branch, PT Bank BNP Paribas Indonesia, PT Bank of Tokyo Mitsubishi UFJ, Ltd, Singapore Branch, The Bank of Tokyo Mitsubishi UFJ, Ltd, Jakarta Branch and Sumitomo Mitsui Banking Corporation, Singapore Branch.
At present, PT Sentral Grain Terminal is developing an integrated warehouse at Cigading Port in cooperation with PT Krakatau Bandar Samudera, a subsidiary of steel maker PT Krakatau Steel Tbk (IDX:KRAS).
Another subsidiary, PT Terminal Bangsa Mandiri, is currently working on reclamation project in Lamong Bay Terminal on Java Island in cooperation with state-owned port operator PT Pelabuhan Indonesia III (Pelindo III). The two parties will develop an industrial zone in the area, including constructing a bulk processing facility.
“In order to develop the two projects, the subsidiaries of the company (FKS Multi Agro) plan to obtain loan from banks,” it said in a statement filed in published statement. FKS Multi Agro is also a party in the loan agreement.
FKS Multi Agro is owned by PT Era Investama Cemerlang with 79.06 per cent shares, PT Caturkartika Perdana 10.42 percent and the public 10.52 per cent.
Pelindo III has earlier said that the total funds needed to develop the Lamong Bay Terminal, in the outskirt of Surabaya town, East Java, reached Rp23.4 trillion. The project is targeted to be completed in 2030.
In addition to developing bulk processing facility, Pelindo and its partners will develop 15 power plants, install two units of cranes, and three units of cranes to serve domestic vessels, and ten units of automatic stacking crate as well as reclamation works.
President Director of FKS Multi Agro Lim Aun Seng said last week at the company’s public expose that going forward, the company will expand to logistic service business. The company sets capital expenditure of $14 million this year, most of which has been used to develop its logistic business through its subsidiaries, including through its subsidiary PT Nusa Prima Logistic. As for next year, the company also plans to set aside capital expenditure of $14-15 million.
Written By Roffie Kurniawan, Email: email@example.com