Jakarta. Pan Brothers, a listed garment manufacturer, is seeking to raise $200 million from a syndicated loan by next month to refinance its debts and add to its working capital.

The company plans to pay back the $165 million loan it borrowed in 2013 from a syndicate of 22 local and foreign banks, Fitri Ratnasari, Pan Brother’s administration director, said on Tuesday.

The 2013 loan bears an interest rate of 3.75 percent above the London Interbank Offering Rate (Libor). The syndicate includes Bank ANZ Indonesia, Bank Commonwealth, Hongkong and Shanghai Banking Corporation, Standard Chartered Bank, CIMB Niaga, and Bank International Indonesia.

Pan Brothers is cutting capital expenditure this year to $20 million, 41 percent lower than last year’s $34 million. The company plans to spend $17 million constructing two textile factories in Central Java, while the remaining $3 million is to be set aside for engine maintenance.

Pan Brothers plans to build seven textile mills by 2016. The company supplies international clothing brands, including Calvin Klein, Tom Tailor, The North Face and Hugo Boss, as well as Nike, Adidas and H & M.

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Source: The Jakarta Globe