Banks prepare to reject PTPN loan waiver, point to cash pile

By Pan Yue
14 May 2020

Indonesian palm oil producer Perkebunan Nusantara III (PTPN) is seeking consent from banks to delay payments on a dollar loan, given expectations of a hit to its business because of the Covid-19 pandemic. But bankers told GlobalCapital Asia this week that the state-owned company has enough cash to make the payments, with the syndicate team set to reject its deferral request. Pan Yue reports.

PTPN made its debut in the offshore loan market last year, raising a $390.6m two year syndicated deal led by Sumitomo Mitsui Banking Corp. The amortising loan, with an average life of 1.65 years, attracted 17 lenders during syndication. It ended up being increased from an initial size of ...

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