Thailand`s PTT expands Indonesian coal mining investment

Antara News, Thursday, February 4, 2010 15:19 WIB

Bangkok (ANTARA News/Asia Pulse) - In a bid to diversify investment risk in the energy industry, Thailand's PTT Group has taken a syndicated loan of US$380 million or some Bt12.5 billion from four domestic commercial banks to invest in Indonesia's coal mining business through Straits Asia Resources Limited (SAR).

The four banks are Siam Commercial Bank and Krung Thai Bank, as joint lead arrangers, with Bangkok Bank and Standard Chartered Bank acting as co-lenders. Chitrapong Kwangsuksathit, acting managing director of PTT International, a PTT subsidiary, said the loan amount would be used to increase SAR's coal production capacity to 11-12 million tons this year from 9 million tons in 2009.

It is expected the capacity would rise to 20 million tons in the next five years. He said the coal output would be exported to Japan, Hong Kong, and China. It is estimated the group would earn revenue of around US$500-600 million from the business.

Source:
Business in Asia Today - Feb.4, 2010
published by Asia Pulse