UPDATE 1-Indonesia's Salim Group obtains $1 bln financing from Northstar, TPG-sources

Mergers & Acquisitons - Americas

Reuters Staff

* Six-year financing has equity portion-sources

* Some proceeds will be used to pay debt-sources

* Lower commodity prices hit Indonesian wealth (Adds detail on companies, share financing,)

SINGAPORE/JAKARTA, Dec 11 (Reuters) - Indonesia’s Salim group, headed by the country’s third-richest man Anthoni Salim, is raising $1 billion from a group of private equity firms including Northstar Group and TPG partly to repay debt, two people with knowledge of the matter said.

Gateway Management, a Singapore-based fund backed by former Standard Chartered bankers, will also participate in the fundraising, which will be backed by Salim Group’s Hong Kong-listed investment firm First Pacific Co Ltd, the sources said, declining to be named as the matter remained confidential.

The financing is structured to give investors access to shares in Salim Group companies including Indomaret, a minimarket operator owned by PT Indomarco Prismatama, the sources said.

“It is a structured financing with an equity portion,” one of the sources said.

Salim Group executives were not immediately available to comment. Northstar, TPG and Gateway declined to comment.

The rupiah has fallen around 11 percent so far this year, making it Asia’s second-worst emerging market currency and hurting the ability of many Indonesian conglomerates to service their U.S. dollar-denominated debt.

A drop in commodity prices has also triggered a decline in the wealth of Indonesia’s richest tycoons by $9 billion this year, according to a Forbes list released last week.

The Wall Street Journal first reported the financing. (Reporting by Saeed Azhar and Eveline Danubrata; Editing by Miral Fahmy)