Excelcomindo Seeks US$400 M in Loans

VIVAnews - PT Excelcomindo Pratama Tbk (EXCL) will seek new loans amounting to US$400 million which will be allocated for repaying debts that will due in 2009 with US$130 million.

The rest of the loans will be aimed at repaying debts in 2010 and 2011.

Excelcomindo Pratama Director of Finance, Willem Lucas Timmermans, said the company expected that the debt to equity ratio (DER) by late 2009 will not be higher than it was in 2008.

"New debts will not add to DER because it is utilized for repaying debts," said Timmermans on Thursday, March 19.

Excelcomindo has received loans commitment from Standard Chartered Bank (SCB) and Royal Bank of Scotland (RBS) valuing US$200 million. Local banks will cover the rest. 

He also revealed that the company is trying to restructure its financial foundation. Excelcomindo's hedging reaches 15 percent, which depends on the market.

In addition, Timmermans went on to say that the company is preparing capital expenditure budget by between US$600 million and US$700 million in 2009. The budget will be taken from the company's cash and the remaining sum will be from vendor financing.

--

Translated by: Bonardo Maulana Wahono