Asia-Pacific Rayon received a US$300 million loan to expand production capacity

Asia Pacific Rayon (APR), Indonesia’s largest rayon integrated fiber producer, announced today that it has obtained a syndicated loan worth IDR 4.5 trillion (US$300 million) from the National Bank and banks with international branches. The company has been vertically integrated into the supply chain from renewable fiber plantations to the development of high-value textiles. The company plans to use the funds to make continuous capital investments in its production facilities in Pangkalan Kerinci, Riau. APR started operations in 2019 and was officially unveiled by President Joko “Jokowi” Widodo in February 2020. The company plans to increase production capacity in the coming year to seize the strong growth potential of viscose staple fiber (VSF) to strengthen its position in Indonesia and the regional export market. APR is a member of the Royal Golden Eagle (RGE) Group, which manages resource-based manufacturing companies that operate globally. The six banks that provide syndicated loans are: PT Bank Indonesia (Persero) Tbk (BRI), PT Bank Central Asia TBk (BCA), PT Pan Indonesian Bank Tbk, PT Bank Pembangunan Daerah Jawa Barat, PT Bank Woori Saudara Indonesia 1906 Tbk And PT Bank KEB Hana Indonesia. The joint authorized lead arranger and bookkeeper (JMLAB) are: Persero Tbk, PT Bank Central Asia Tbk and PT BANK Pan Indonesia Tbk. APR Director Basrie Kamba said: “This money will be used to support our continued investment in Kerinci. Rayon fiber or viscose fiber is a textile raw material extracted from sustainably managed plantations. Because rayon is both renewable It is also biodegradable, so it can support man-made fibers. Indonesia and other markets around the world are moving towards sustainable fashion.” The company’s planned expansion plan is in line with the government’s increase in investment and employment to support economic recovery and respond to the COVID-19 pandemic Strategy of sustainable impact.