Krakatau Steel gets US$235m of loan
Thursday, March 15 2012 - 05:28 AM WIB
State owned steel producer PT Krakatau Steel Tbk (KRAS) recently acquired US$235 million worth of loan from the Industrial and Commercial Bank of China Limited (ICBC) and China Bohai Bank (CBB) to start the construction of a new hot metal blast furnace project.
"We will sign the Memorandum of Understanding (MoU) at the end of March," said company president director Fazwar Bujang as quoted by Kontan, adding that the total investment needed for the project reached US$528 million until 2014.
The US$235 million loan is part of a secured loan commitment of US$470 million from various sources, including local banks that he declined to name.
Once completed, the blast furnace project in Cilegon should be able to produce up to 1.2 million tons of hot metal in 2014. (*)