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Asia Pacific Rayon secures US$300 M loan to expand production capacity
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(Courtesy of APR)
A
sia Pacific Rayon (APR), the largest integrated rayon fiber producer in Indonesia, announced today that it had secured a syndicated loan facility worth Rp 4.5 trillion (US$300 million) from national banks and banks with international affiliates.
The company, which is vertically integrated in its supply chain from renewable fiber plantations to high-value textile development, plans to use the fund toward continued capital investment in its production facilities in Pangkalan Kerinci, Riau.
APR commenced operations in 2019, and was formally inaugurated in February 2020 by President Joko "Jokowi" Widodo. It plans to increase its production capacity over the coming year to capture the strong growth potential of viscose staple fibers (VSFs) toward strengthening its market position in Indonesia and regional export markets. APR is a member of the Royal Golden Eagle (RGE) Group, which manages resource-based manufacturing companies with global operations.
The six banks providing the syndicated loan are: PT Bank Rakyat Indonesia (Persero) Tbk (BRI), PT Bank Central Asia Tbk (BCA), PT Bank Pan Indonesia Tbk, PT Bank Pembangunan Daerah Jawa Barat, PT Bank Woori Saudara Indonesia 1906 Tbk and PT Bank KEB Hana Indonesia.
The joint mandated lead arrangers and book runners (JMLAB) are: PT Bank Rakyat Indonesia (Persero) Tbk, PT Bank Central Asia Tbk and PT BANK Pan Indonesia Tbk.
APR Director Basrie Kamba said: "This funding will be used to support continued investment in our operations in Kerinci. Rayon fiber, or viscose, is a textile raw material derived from sustainably managed plantations. As rayon is both renewable and biodegradable, it supports the trend towards sustainable fashion in Indonesia and in other markets around the world.”
The company’s planned expansion aligns with the government strategy to increase investment and employment to support economic recovery and tackle the continuing impacts of the COVID-19 pandemic.
Following the passing of the Omnibus Law last October to streamline investments and stimulate job creation, President Jokowi said in March 2021 that investment would be the key to achieving 5 percent economic growth this year.
"This loan facility and our continued investment in our operations are evidence of the growth potential of the viscose rayon sector in Indonesia and around the world,” said Basrie.
“We are committed to supporting the Indonesian government's efforts to improve the investment climate in export-oriented manufacturing industries, as well as its efforts to create upstream jobs in plantations and the processing of raw materials, and downstream opportunities in textile factories and related businesses.”
BRI Executive Vice President Hari Setiawan said: “As a representative of the JMLAB and all lenders, I hope this collaboration will be useful in supporting the growth and development of PT Asia Pacific Rayon in increasing production and operations, as well as supporting the recovery of Indonesia's export growth.”
“Support from BCA and other banks reflect our confidence in APR, and our contribution to promote a sustainable and environmentally friendly industry. We hope this cooperation will tighten our relationship as well,” said Susiana Santoso, the executive vice president of BCA.
