Asia Pacific Rayon (APR), the largest integrated rayon fibre producer in Indonesia, has secured a syndicated loan facility of 4.5 trillion rupiahs (US$300 million) with several banks. The funding will be used to support continued capital investment in the company’s production facilities in Pangkalan Kerinci, Riau Province, Sumatra.
The participating banks are Bank Rakyat Indonesia (Persero), Bank Central Asia, Bank Pan Indonesia, Bank Pembangunan Daerah Jawa Barat, Bank Woori Saudara Indonesia 1906, and Bank KEB Hana Indonesia. The joint mandated lead arrangers and bookrunners for the syndicated loan are Bank Rakyat Indonesia (Persero), Bank Central Asia, and Bank Pan Indonesia.
APR director Basrie Kamba says: "This funding will be used to support continued investment in our operations in Kerinci. Rayon fibre, or viscose, is a textile raw material derived from sustainably managed plantations. As rayon is both renewable and biodegradable, it supports the trend towards sustainable fashion in Indonesia and in other markets around the world.”
The planned expansion is aligned with the Indonesian government’s strategy to increase investment and boost employment to support the recovery of the country’s economy and address the continued impact of the Covid-19 pandemic.
Following the passing into law of the Omnibus Bill in October last year to streamline investment and stimulate job creation, President Jokowi Widodo said last month that investment would be the key factor in achieving 5% economic growth in 2021.
"This loan facility and our continued investment in our operations are evidence of the growth potential of the viscose rayon sector in Indonesia and around the world. We are committed to supporting the Indonesian government's efforts to improve the investment climate in export-oriented manufacturing industries, and its efforts to create upstream jobs in plantations and the processing of raw materials, and downstream opportunities in textile factories and related businesses,” Basrie adds.