JAKARTA. PT Surya Semesta Internusa Tbk (SSIA) plans to withdraw the available loan facilities to fund the company's expansion.
The loan facilities already owned by the company are a loan worth US$ 100 million, equivalent to Rp 1.4 trillion, obtained from the International Finance Corporation (IFC). This loan commitment has been obtained by the company since the end of May last year.
So far, SSIA has not withdrawn the loan yet. "For this year, we plan to withdraw not more than 50% of the total facilities," said Erlin Budiman, Head of Investor Relations of SSIA to KONTAN on Wednesday (20/2).
In accordance with the provisions, the withdrawal of loan facilities can be done four times until 2020. The loan will mature in June 2026. Interest on this loan is equal to 6 months Libor plus 2.75% per year.
Erlin added that the loan proceeds from IFC will be used to finance the land acquisition plan. The industrial estate developer is eyeing the land located in Subang.
SSIA intends to build a 2,000 hectares (ha) industrial area in the region. So far, SSIA has acquired 1,053 ha. Thus, the company still needs to add another 1,000 ha of land within the next three to four years.
For that, Erlin said, it needed funds of around Rp 1 trillion. "So, this year's withdrawal should be less than 50%," added Erlin.
SSIA management is now calculating how much funding will be needed this year. This will be a reference to how much funds will be withdrawn from IFC. "We will see how much money is needed," Erlin explained. (AM/AR)