Indonesian textile player APR raises $300 mn to expand production

19 Apr '21

3 min read

Pic: Asia Pacific Rayon

Asia Pacific Rayon (APR), a leading integrated rayon fibre producer in Indonesia, has announced that it has secured a syndicated loan facility of $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 fibre 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 fibre (VSF), strengthening its market position in Indonesia and in export markets across the region, according to APR.

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, APR said.

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 per cent economic growth in 2021, APR said in a media statement.

“This funding will be used to support continued investment in our operations in Pangkalan Kerinci. Rayon fibre 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,” Basrie Kamba, director, APR said in a statement.

“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,” Basrie added.

Fibre2Fashion News Desk (GK)

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