CIMB Niaga to lend $19.7M to Hotel Sahid

Hotel Sahid Jaya will use US$13 million from the US$ 19.7 milion it will borrow to refinance its loans from Mega Bank.

The hotel group's loans from Bank Mega were obtained in 2008 that will mature in 2013. The remaining US$6.59 million will be used to renovate rooms and other facilities at SHID’s hotels.

“The interest rate is 11 percent with a maturity period of six years,” SHID president director Hariyadi Sukamdani said in a written statement.

SHID recently obtained approval from shareholders to pledge its assets for bank loans. Hariyadi previously said that the company had an offer from Bank Victoria for Rp 200 billion in loans to support SHID’s refinancing strategy and renovation plans.

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