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Indosat changed the Rp1 trillion loan agreement with its subsidiary

31 March 2020 12:02

JAKARTA. PT Indosat Tbk (ISAT), one of the largest telecommunication companies in Indonesia, have changed to subordinated loans with a total aggregate value up to Rp1 trillion from several subsidiaries.

The subordinated loan has been obtained by ISAT since 2018. According to information received by idnfinancials.com today, the company has used Rp22 billion in loan funds until now.

In Indonesia Stock Exchange (IDX) information disclosure, ISAT said there are 6 subsidiaries involved. The six subsidiaries are PT Aplikanusa Lintasarta, PT Digital Exchange Portal, PT Starone Mitra Telekomunikasi, PT Indosat Mega Media, Indosat Singapore Pte. Ltd., and PT Lintas Media Danawa.

The loans are derived from excess cash owned by each subsidiary. This cash optimization program is considered to provide liquidity for the company, with an equitable cost.

Besides of that, ISAT management believes that the affiliated transaction can improve the company's working capital. As well as having a positive impact on the company's financial statements for this year.

For information, the interest rate agreed in the subordinated loan is the Jakarta Interbank Offered Rate (JIBOR), plus a margin of 2.25%. (KR)

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