The Jakarta Post
Petrochemical producer PT Chandra Asri Petrochemical has sealed a US$70 million term loan facility agreement with privately owned Bank Permata to strengthen the former’s financial resilience amid the COVID-19 pandemic.
The publicly listed petrochemical company will use the loan facility for “general corporate purposes, annual or regular capital expenditure (capex), operating expenses and/or refinancing requirements.”
The agreement was signed by Bank Permata corporate banking division head Lamas Marasi Tua and Chandra Asri financial director Andre Khor alongside corporate affairs director Suryandi on Monday.
“During this challenging period due to the COVID-19 pandemic, Chandra Asri, as one of the key industry players in Indonesia, is fully committed to continuing to be the main pillar of growth for the downstream petrochemical industry,” Andre said as quoted in a statement. “As we know, reactivation of industrial growth is very important at this time.”
Manufacturing industry growth has been on the decline since last year’s third quarter and its contribution to Indonesia’s gross domestic product (GDP) has also tumbled. The sector grew at a sluggish 2.06 percent year-on-year (yoy) in the first quarter, down from 3.85 percent in the same period last year, with its contribution to GDP dropping to 19.98 percent from 20.06 percent in the first three months of 2019, Statistics Indonesia (BPS) data showed.
“This signing ceremony is our form of support for Chandra Asri and domestic industries amid the uncertainties arising from the COVID-19 pandemic,” Bank Permata’s wholesale banking director Darwin Wibowo said in the same statement.
“Our trust in their business as the market leader and the most integrated petrochemical producer in Indonesia solidified the decision to provide a $70 million term loan facility,” he added.
Shares of Chandra Asri, traded on the Indonesia Stock Exchange (IDX) under the code TPIA, were down 3.05 percent at 2:13 p.m. Jakarta time on Monday versus a 0.13 percent gain recorded by the Jakarta Composite Index (JCI). Meanwhile, Bank Permata stocks (BNLI) soared 3.23 percent.
Chandra Asri Petrochemical was established in 2011 following a merger between PT Chandra Asri and PT Tri Polyta Indonesia. The company produces olefins and polyolefins-based products including polyethylene, propylene and butadiene, according to its official website.