ANZ Panin gives loans to Tiga Pilar for expansion

The Jakarta Post, Jakarta

PT ANZ Panin Bank, one of the country's ten largest private commercial banks, has agreed to provide Rp 196 billion (US$20.74 million) and $8.2 million in loans for noodle manufacturer PT Tiga Pilar Sejahtera Food.

The agreement, signed Tuesday, covers a refinancing package of Rp 118 billion and $3.2 million and a financing package of Rp 78 billion and $5 million for the expansion of Tiga Pilar's factory in Solo, Central Java.

The expansion package includes a leasing facility of Rp 44 billion, with PT Austindo Nusantara Jaya Finance as the lessor, said ANZ Panin president director John Collins.

Tiga Pilar president director Joko Mogoginta said that with the banking facilities, the company would be able to expand its business.

The company will also look for more funds by offering right issues amounting to Rp 500 billion, he said.

ANZ Panin, through Austindo Nusantara, provided in September last year a leasing transaction of $4.2 million for PT Patra Power Nusantara, a subsidiary of Tiga Pilar.

Tiga Pilar plans to acquire three companies operating in the palm oil, food and beverages and coal-fired power sectors in March at the latest to reduce its production costs, said the company's vice president for corporate finance, Yulianni Liyuwardi.

Collins said the agreement would further foster the relationship between the bank and Tiga Pilar, while "demonstrating the bank's ability to close a diverse set of products for its clients".