JAKARTA (Yosefardi) – Paper producer PT Fajar Surya Wisesa Tbk (FASW), Fajar Paper, postpones to launch its rights issue program as the current market condition does not support.
The company needs fresh funds for financing the construction of new paper mill (PM#8) in Surabaya, East Java. The project will cost US$165 million. New facility will add capacity by 350,000 tons per year, to total 1.55 million tons per year.
FASW had in September 4, 2013 signed loan term loan facility commitment amounting US$240 million with 5 banks, to fund expansion of business and to refinance existing long term loan.
The new loan has tenor of 5 years, with 2 years extension option.