BNI Distributes Credit to Pulp & Paper Companies in America

INDUSTRY.co.id - Washington DC --- PT Bank Negara Indonesia (Persero) Tbk (BNI) through its overseas office network provides support for financing facilities to Cascade Pacific Pulp LLC (CPP), a Pulp-producing factory in the United States.

The financing facility to be channeled through BNI Overseas Branch of New York is amounting to USD 100 million which will be used to support the improvement of the company's financial performance through investment financing.

This financing will help the company to run a factory production capacity improvement program and also the company's working capital.

The financing distribution was marked by the signing of a loan facility between BNI and CPP in Washington DC, United States, Monday (July 23, 2018) local time, or Tuesday West Indonesia Time. The signing was attended by Director of Treasury and International BNI Rico Rizal Budidarmo, Director of International Grand Investment Corporation Arvind K Agarwal, and General Manager of BNI New York Oswald JM Tambunan.

Rico Rizal Budidarmo said that the provision of this financing facility is one of BNI's commitments to synergize with the government's strategy in an effort to maintain adequate supply of raw materials for domestic production. The pulp production from CPP is absorbed by several Indonesian companies that require pulp species with long fiber characteristics for tissue paper as well as viscose / rayon raw materials, where the products will be re-exported to other countries.

By using high quality raw materials, the value of products and services from Indonesia will be more qualified and competitive to be distributed to the international market. The source of the financing fund will use the funds obtained from offshore market.

"This facility also marks BNI's sustainability in financing Pulp and Paper projects through its overseas branch network and this is the third project in the last three years. The financing will be used as a corporate sector credit that will also support the achievement of BNI asset growth expansion this year with a 15 percent growth target. It is hoped that in the future BNI will be able to open new cooperation opportunities with other business entities in the United States and also enter the global market while prioritizing the concept of supply chain business or value chain in order to boost Indonesia's economic growth, "Rico said.

As confirmed by BNI's Managing Director, Ahmad Baiquni, BNI's business development must be in line with the BUMN Ministry's work plan as well as the Indonesian government's strategy. Cascade Pacific Pulp LLC (CPP) is a Pulp-producing factory operating in Oregon USA with a production capacity of 205,000 tons per year.