JAKARTA – PT Eratex Djaja Tbk (ERTX) secured a credit facility with a limit of USD 30 million from PT UOB Indonesia. The signing of said facility agreement by both parties took place last week, on December 9, 2022.
In the information disclosure quoted Wednesday (14/12), Mandeep Singh, Director of Eratex Djaja, said that the credit facility will consist of a revolving credit facility (RFC) capped at USD 1 million, a clean trust receipt (CTR) capped at USD 16 million, a term loan (TL) with a limit of USD 3 million, and a foreign exchange (FX) facility with a limit of USD 10 million.
As of now, ERTX is currently in the process of paying back its loan to HSBC. Therefore, the guarantee for said loan, including machine and invoice fiduciary, corporate guarantee from PT Ungaran Sari Garments (an affiliate), and a personal guarantee from Maniwanen (President Commissioenr of ERTX), will be transferred to guarantee the loan facility from UOB Indonesia.
Accoring to Singh, the directors have secured the green light regarding this facility procurement and guarantee transfer during the General Shareholders Meeting on July 29, 2020.
The credit facility of UOB will minimise the company’s financial expenses, sustain its business continuity, and support its business development.
As of September 2022, ERTX’s equity reportedly reached USD 21.93 million, shifting from USD 19.91 million seen at the end of 2021. (LK/ZH)