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AKARTA: Intraco Penta, a company which trades and leases heavy equipment and related spare parts, secured Tuesday loans from Bank Mandiri and Bank Syariah Mandiri (BSM) worth US$38.1 million mostly to refinance the company’s debts, an executive says.

Mandiri’s director Sunarso said on Tuesday that Mandiri would disburse $23.4 million and the remaining $14.7 million loans will be provided by BSM.

“The loans consist of 3-year investment credit and 1-year working capital loans to strengthen investment in heavy equipments to support mining industry,” Sunarso told a press briefing at Mandiri’s headquarter in Jakarta. Petrus Halim, Intraco’s president director, added that most of the loans will be used to refinance the company’s old debts with other lenders to smoothen the company’s acquisition plans.

Intraco aims to acquire two or three coal miners in the first half of next year, according to him, and is ”currently assessing the potential firms in a due diligence meeting”. The company will launch a rights issue to fund the acquisition, expecting to raise more than Rp 1 trillion, Petrus said.

Shares in Intraco (INTA) were traded lower on Tuesday’s close at Rp 2,250 apiece, down 7.22 percent, or 175 points, compared to a day earlier. The shares have advanced by about 275 percent so far this year, outperforming the Jakarta composite index (JCI) 40 percent gain.

Intraco has a total market capitalization of Rp 972 billion. — JP