Lotte Chemical Titan’s Indonesian unit secures RM10.58bil loan to fund expansion project

TheStar Tue, Mar 21, 2023 06:13pm - 2 months View Original


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.

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