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tate-owned steel company PT Krakatau Steel (KRAS) has secured a US$200 million syndicated loan facility from the China Development Bank Corporation (CDB), the Industrial and Commercial Bank of China Limited (ICBC), and The Hongkong and Shanghai Banking Corporation Limited (HSBC), Krakatau announced on Thursday.

The deal, backed by China’s state export credit guarantee agency Sinosure, was signed on Aug. 15 and is part of Krakatau’s effort to finance the construction of its blast-furnace complex, designed to produce 1.2 million tons of hot metal per year.

The complex will be built on a 60-hectare plot in Cilegon, Banten, and is expected to start operations in 2014.

Of the total loans, the HSBC is providing $40 million, while CDB and ICBC are lending $80 million each.

The construction project, estimated to cost $601 million, will be carried out by subsidiary PT Krakatau Engineering and Chinese state-owned firm Metallurgical Construction Group Corporation – Capital Engineering and Research Incorporation Limited (MCC-CERI).

Last May, Krakatau secured $450 million in syndicated loans from Bank Mandiri, Bank Negara Indonesia (BNI) and Bank Rakyat Indonesia (BRI) for the same project.