Asia Pacific Rayon Raises US$300m from National and International Affiliated Banks to Expand Production Capacity

• Continued capital expenditure aims to
  boost production and support the recovery of Indonesian economy
• Loan agreements aligned with Indonesian
  Government’s strategy to drive investment growth in 2021
• APR is a member of the RGE group of
  companies

JAKARTA, INDONESIA – Media OutReach – 12 April 2021 – Asia Pacific Rayon (APR), the largest integrated rayon fiber producer in
Indonesia, today announced that it has secured a syndicated loan facility of Rp
4.5 trillion (US$300 million) with national and international affiliated banks.
The funding will be used to support continued capital investment in the
company’s production facilities at Pangkalan Kerinci, Riau Province,
Sumatra. 

 

APR is vertically
integrated through its supply chain, from renewable fiber plantations to
high-value textile development. It commenced operations in 2019 and was
formally inaugurated by President Jokowi Widodo in February 2020. APR
plans to increase its production capacity over the coming year to capture the
strong growth potential of viscose staple fiber (VSF), strengthening its market
position in Indonesia and in export markets across the region. APR is a member
of the RGE group of companies.  Founded
by Sukanto Tanoto, RGE manages a group of resource-based manufacturing
companies with global operations.

 

The syndicated loan participating banks are PT Bank Rakyat Indonesia
(Persero) Tbk, PT Bank Central Asia Tbk, PT Bank Pan Indonesia Tbk, PT Bank
Pembangunan Daerah Jawa Barat, PT Bank Woori Saudara Indonesia 1906 Tbk and PT
Bank KEB Hana Indonesia

 

The joint mandated lead arrangers and bookrunners for the syndicated loan
are PT Bank Rakyat Indonesia (Persero) Tbk, PT Bank Central Asia Tbk, and PT
BANK Pan Indonesia Tbk.

 

Basrie Kamba, Director, Asia Pacific Rayon, said: “This funding will be used to
support continued investment in our operations in Kerinci. Rayon fiber, 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.”

 

APR’s 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 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,” said Basrie.

 

Hari Setiawan, Executive
Vice President of PT Bank Rakyat Indonesia (Persero) Tbk said : “As Representative
of JMLAB and all lenders, I hope this collaboration will be useful to support the
growth and development of PT Asia Pacific Rayon in increasing production and
operations and also supporting the recovery of Indonesia’s export growth.”

 

“Support from BCA and other Banks reflect our confidence in APR, and as our
contribution to promote a sustainable and environment friendly industry. We
hope this cooperation will tighten our relationship as well,” said Susiana Santoso, Executive Vice President of PT Bank Central Asia Tbk.