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| Thailand's PTT expands Indonesian coal mining investment |
| 06/Feb/2010 Intellasia | TNA |
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| 6 Feb, 2010 - 10:50:23 AM |
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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 $500-600 million from the business.
The group’s investment in the coal business is considered a channel to encourage sustainable development of alternative energy and a good opportunity to conserve the environment in the future.
SAR produces and distributes coal in Indonesia. The Singapore-based company is listed on the Singapore Stock Exchange with PTT Asia Pacific Mining Pty Ltd (PTT APM) holding a major stake of 45.6 per cent.
PTT APM is registered in Australia with 40 per cent held by Straits Resources Limited and 60 per cent by PTT Plc through Lints, which is a subsidiary of PTT International.
SCB President Kannikar Chalitaporn said the financial support given to SAR is deemed as the key business cooperation since it is an extension of the loan to the company registered overseas.
It reflected Thai financial institutions’ strong competence and full readiness to support local companies’ unlimited business expansion overseas.
In addition, it would give local commercial banks a chance to explore more investment opportunities in overseas markets.
The SCB chief said she was confident the loan amount, which would be used to support the working capital of SAR, would help strengthen the PTT Group’s business base and boost its continued growth in the future.
http://www.mcot.net/content/17032
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