Indonesia Plantation Firm PTPN Gets OK for Dollar Loan Restructuring
- All foreign creditors agreed to extend loan by five years
- Agreement may revive confidence among banks toward local firms
Bunches of harvested oil palm fruit in Indonesia.
Photographer: Dadang Tri/Bloomberg
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Indonesian state-backed plantation firm PT Perkebunan Nusantara III obtained approval from all creditors of its syndicated dollar loan to lengthen the term, in a positive development for the country’s credit market that’s faced mounting debt concerns during the pandemic.
Lenders of a $390.6 million syndicated loan agreed to extend the facility by five years, with a three-year extension option, said Muhammad Iswahyudi, finance director at Perkebunan Nusantara III, or PTPN Group, in a text message on Friday. Under the new deal, Perkebunan Nusantara will pay interest of 262.7 basis points over Libor, higher than what was previously set.