JAKARTA. South Korean government-owned Korea Development Bank (KDB) has granted an affiliate loan facility of US$20 million to PT KDB Tifa Finance Tbk (TIFA).
According to TIFA Director Ester Gunawan, the loan is categorised as an affiliate transaction due to KDB owning a 84.65% stake in the company. In addition, it is also categorised as a material transaction due to its value reaching 76.61% of the company's total equity.
TIFA, Ms Gunawan said, is currently in need of working capital although the company has yet to receive assurance regarding funding facilities from domestic banks amid the current economic downturn. She added that the company has expansion plans to enter the funding business for infrastructure projects in Indonesia.
"This transaction has several benefits for the company, including a low interest rate and more flexible provisions," Ms Gunawan said in a stock exchange filing.
In 2019, TIFA posted Rp 199.84 billion in revenue and Rp 33.03 billion in net profit. As of last year, the company's asset value was recorded at Rp 1.21 trillion. (KR/MS)