by Robert Yota
Country’s largest petrochemical company PT Chandra Asri Petrochemical (TPIA) has received a credit facility worth $70 million from PT Bank Permata (BNLI). The loan facility will be utilized to support the operational needs, capital expenditure, and refinancing requirements of TPIA.
“This agreement is our form of support for Chandra Asri and domestic industries amid uncertainties arising from the COVID-19 pandemic. Our trust in their business as the market leader and the most integrated petrochemical producer in Indonesia solidifies the decision to provide the term loan facility. We are optimistic that this collaboration not only shows Permata Bank’s strong liquidity in the market but also showcases the strong relationship between Chandra Asri and us,” said Permata Bank wholesale banking director Darwin Wibowo in a recent statement.
Meanwhile, Chandra Asri finance director Andre Khor expressed his company’s gratitude for the trust given by Permata, and assured TPIA’s commitment to maintaining a strong performance as the market leader of the petrochemical industry. “We are grateful for the trust given by Permata Bank. During this challenging period, Chandra Asri, as one of the key industry players in the country, is fully committed to continuing to be the main pillar of growth for the downstream petrochemical industry. As we know, reactivation of industrial growth is very crucial at this time,” said Andre.
At the end of last year, TPIA’s debt with interest totaled to $791.4 million, which is 28% higher (YoY) from $618.2 million in 2018. Meanwhile, TPIA’s cash and equivalents dropped by 9.2% into $660.2 million at the end of 2019 as opposed to $726.7 million in 2018.
Chandra Asri is a subsidiary of holding company Barito Pacific (BRPT) owned by magnate Prajogo Pangestu.