REPUBLIKA.CO.ID, JAKARTA -- State owned gas distributor Perusahaan Gas Negara (PGN) has signed a syndicated loan facility agreement on Thursday worth 650 million USD with in five years term.
The syndicated banks consist of Australian and New Zealand Banking Group Limited (ANZ), The Bank of Tokyo-Mitsubishi UFJ Ltd (BTMU), Citigroup Global Markets Singapore Pte Ltd (Citi), The Hongkong and Shanghai Banking Corporation Limited (HSBC) and Sumitomo Mitsui Banking Corporation (SMBC).
The loans comprise of 590 million from domestic loan, while 60 milion from foreign loan. The interest rate is based on Libor (London interbank offered rate) plus 225 basis points for onshore, and Libor plus 200 bps for offshore.
PGN finance director, M Riza Pahlevi Tabrani said that the funding would be used for the development of natural gas infrastructure in Indonesia.
"We continue to support the conversion of fuel oil to natural gas, which will have an impact on reduction of fuel subsidy reduction," Tabrani said recently.
The loan is also used to strengthen and securing the natural gas supply by investing in upstream gas field.
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