JAKARTA (Yosefardi) – Pulp and paper producer PT Pabrik Kertas Tjiwi Kimia Tbk (TKIM) plans to launch rights issue program to raise Rp1.33 trillion funds.
This funds will be injected to its unit PT Oki Pulp & Paper Mills. So far, TKIM had put Rp3.23 trillion funds into OKI Pulp.
OKI Pulp needs US$407 million funds, equivalent Rp4.9 trillion. TKIM said it will, by gradual, inject funds into OKI Pulp until 2016.
OKI Pulp plans to build paper mill with capacity of 2 million tons per year, which costs US$2.63 billion.
TKIM had secured loan from China Development Bank Corporation for boosting its capital placement in OKI Pulp.