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AKARTA: PT Adaro Indonesia, a subsidiary of Indonesia’s second-largest coal producer, PT Adaro Energy, announced on Monday that it had secured a 10-year tenure bank loan of US$750 million to fund potential acquisitions and other capital expenditures.

“We’re very thankful for the key relationship banks that supported this transaction with a commitment of $1 billion. This is the first 10-year corporate loan transaction in Indonesia, and we are very thankful to our key relationship banks for the support they have provided,” said David Tendian, Adaro’s chief financial officer, in a press statement.

The company also announced that another subsidiary, Saptaindra Sejati, a mining contracting company, completed a $400 million, 7-year loan transaction in February 2011.

Adaro Indonesia completed a 10-year $800 million bond offering in October 2009, which was the largest bond offering with a maturity of 10 years by an Indonesian corporation since the 1998 financial crisis.

In the first quarter of this year, Adaro Energy announced that it booked an 11.7 percent increase in net revenue to $757.2 million compared to the same period last year on the back of the increase in coal prices on the international market. — JP