KUALA LUMPUR: Lotte Chemical Titan Holding Bhd (LCT), via its subsidiary, PT Lotte Chemical Indonesia (LCI), has entered into a 12-year US$2.4 billion (about RM10.58 billion) term loan facility with The Export-Import Bank of Korea, Korea Trade Insurance Corporation and other commercial banks.
In a statement with Bursa Malaysia today, LCT, the first stand-alone polyolefins producer in Malaysia, said the loan facility was to fund the development of its integrated petrochemical facility, the Lotte Chemical Indonesia New Ethylene project (Line project).
LCT holds an effective equity interest of 51 per cent in LCI, the owner of the Line Project, while Lotte Chemical Corporation (LCC), the parent of LCT and guarantor of the loan facility, holds the remaining 49 per cent.
LCT president and chief executive officer Park Hyun Chul said the construction of the Line project commenced in January 2022 and has been slated for completion in 2025.
"I am glad that the construction progress, thus far, is on schedule, and we are confident that the Line project will be completed on time,” he said.
Park said as at Jan 6, 2023, LCC and LCT had completed their portion of the equity injection of US$1.6 billion into LCI, representing 40 per cent of the capital structure.
"The completion of the loan facility for the Line project marked an important milestone with the finalisation of the remaining capital funding for the project,” he said.
Park said completing the Line project would increase the group’s production capacity by 65 per cent.
"As Indonesia is a net importer of petrochemical products, the project will enable us to capitalise on the anticipated increase in demand for our products in the country,” he added. - Bernama