Coal miner ABM Investama has secured a US$450 million syndicated loan with five-year tenure from OCBC Group, DBS Bank Singapore, Bank ANZ Indonesia and state lender Bank Mandiri. The loan will be used to finance expansion of its subsidiaries.
CEO Andi Djajanegara says, “This funding will strengthen ABM’s cash flow, improve company solvency as well as reducing our exposure to the liability risks.” He says the loan shows the financial institutions’ confidence in ABM’s future performance.
ABM, part of the Tiara Marga Trakindo Group, is an investment holding company with interests in mining services contractors, coal mines and power solutions, as well as mining support businesses such as engineering, logistics and manufacturing parts for heavy equipment. It previously announced that coal production at its mining units is set to rise 28.6% to 6 million tonnes.