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Chandra Asri gets $533 million debts
Petrochemical producer PT Chandra Asri Petrochemical (TPIA) has made the assets of its two subsidiaries, PT Styrindo Mono Indonesia and PT Petrokimia Butadine Indonesia, collateral for loans worth US$533 million
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etrochemical producer PT Chandra Asri Petrochemical (TPIA) has made the assets of its two subsidiaries, PT Styrindo Mono Indonesia and PT Petrokimia Butadine Indonesia, collateral for loans worth US$533 million.
Chandra Asri, along with its two subsidiaries, signed a security sharing agreement last Friday with nine lenders, including DBS Bank Ltd., Bank Central Asia (BCA) and Bank Danamon Indonesia.
'The $542 million collateral was given pari passu to the nine banks,' Chandra Asri director Suryandi said in a press statement on Tuesday, as quoted by kontan.co.id.
Chandra Asri since last year has been looking for financing to partly expand its naphtha cracker facility from 600,000 kilotons of ethylene to 860,000 kilotons.
The naphtha cracker expansion, which requires $380 million in investment, is necessary to support Chandra Asri's other expansions on other products, like ethylene, propylene, pyrolysis gasoline and mixed C4 ' all use ethylene as their raw material.
Apart from higher ethylene production, the project will also see a boost in its annual production capacity of propylene by 150,000 tons to 470,000, pyrolysis gasoline by 120,000 tons to 400,000, and mixed C4 by 95,000 tons to 315,000.
The company said that its growing production would help it become more self-sufficient in its supply of propylene for its polypropylene plant and mixed C4 for its butadiene plant.
