JAKARTA - PT Suparma Tbk (SPMA) is seeking US$8-10 million funding for its No. 10 Paper Machine (PM) project in order to obtain a letter of credit (LC) and a Letter of Credit with Domestic Documentation. This was announced by SPMA Director Hendor Luhur in a public expose report published on Tuesday (15/12).
According to Mr Luhur, financing of the project began in 2019 with a US$32.1 million budget from refinancing. "We call it refinancing because it came from the company's internal cash," he said.
The LC, he added, will be used to purchase imported raw materials while the Letter of Credit with Domestic Documentation will be used to purchase locally-produced raw materials. "This can't be procured using our internal cash, so we have to use a bank-issued LC," Mr Luhur said.
The company has allocated US$6-7 million for the LC and US$2-3 million for the Letter of Credit with Domestic Documentation. (LK/MS)