Chandra Asri offers assets of two subsidiaries as collateral for US$533 mln debts

25-Jul-14

Petrochemical producer PT Chandra Asri Petrochemical (TPIA) has made the assets of its two subsidiaries, PT Styrindo Mono Indonesia and PT Petrokimia Butadine Indonesia, collateral for loans worth US$533 million, as per The Jakarta Post. Chandra Asri, along with its two subsidiaries, signed a security sharing agreement with nine lenders, including DBS Bank Ltd., Bank Central Asia (BCA) and Bank Danamon Indonesia. Since last year, Chandra Asri has been looking for financing to partly expand its naphtha cracker facility from 600,000 kilotons of ethylene to 860,000 kilotons. The naphtha cracker expansion, which requires US$380 mln in investment, is necessary to support Chandra Asri’s other expansions on other products, like ethylene, propylene, pyrolysis gasoline and mixed C4. Apart from higher ethylene production, the project will also see a boost in its annual production capacity of propylene by 150,000 tons to 470,000, pyrolysis gasoline by 120,000 tons to 400,000, and mixed C4 by 95,000 tons to 315,000.