On the occasion of the IDB Group Day in Jakarta, Indonesia (May 11, 2011), the Islamic Corporation for the Development of the Private Sector ( ICD) and Sritex Group signed a term sheet for a USD 140 Million Syndicated Islamic Facility. ICD is the Mandated Lead Arranger for the facility and is likely to commit a significant participation in the transaction. ICD is in the final stage of the project’s Due Diligence conducted in collaboration with a number of renown international consultants. A number of Indonesia’s largest banks have expressed their interests in participating in this project.

The project involves setting up of a state-of-the-art Rayon Fibre (RF) plant with an estimated annual production capacity of 80,000 tons. The project site spanning over 65 hectares is located in the Central Java Province, Indonesia. The total covered area of the plant will be 45 hectares. .

The project will be a downstream industry in a chain of backward linkage units in the textile industry. The Sritex Group is already operating a number of apparel production, weaving and spinning units. Therefore, the project will help in reducing the importation cost of Rayon Fibre, making the whole Group gain a competitive edge.

Rayon Fibre (RF) also known as Viscose Staple Fibre (VSF) is a man-made fibre which is 100% natural, manufactured from either dissolving grade wood pulp or cotton linter pulp, both sustainable natural resources. As compared to other types of fibre, VSF is considered superior because of its brighter, softer/silkier feel, higher moisture absorbance, better static absorbance, higher uniformity, and eco-friendliness.