HomeNewsVideos

Cemindo acquired a loan facility from BNI of IDR 1 trillion and USD 485 million

23 December 2021 09:02

JAKARTA. PT Cemindo Gemilang Tbk (CMNT) secured four short-term loans of a total of over IDR 1 trillion and USD 485.34 million. This amount of money would be channelled to support its refinancing agenda, working capital, and operational needs.

CMNT management specified that these loans comprise several facilities in the information disclosure. They include an IDR 772.5 billion loan with an interest rate of 7.5% per year, due on November 20, 2022, and a letter of credit (LC) facility of IDR 250 billion with a 7.5% interest maturing in 12 months starting December 22, 2021. There are also an extension of a treasury line facility of USD 100 million at most, available until November 20, 2022, and an investment credit facility worth USD 385.34 million with a 3.29% interest plus three-month worth of USD LIBOR or other alternative reference interest rates.

The management also listed several considerations and intentions behind this massive loan facility transaction. First, CMNT means to fund the refinancing of the factory of Semen Merah Putih Line 1 Bayah based on the existing syndicated loan. Then, it would also cover the refinancing of the factory of Semen Merah Putih Line 2 Bayah currently handled by Sinoma International Engineering Co. Ltd and PT Sinoma Engineering Indonesia. CMNT would also boost the working capital for the cement production plant in Bayah, grinding plant in Ciwandan and Gresik, packing plant in Pontianak, and other plants.

Then, the fourth purpose is related to the credit ceiling of Import LC/SKBDN/Trust Receipts and other general needs. Lastly, it is also related to the transaction limit of foreign currency exchange of non-today forex, forward, swap, cross-currency swap (CCS), and other derivative transactions for hedging purposes and other operational needs.

The management would ensure that these transactions would positively affect the company, considering the longer tenor period and a more affordable cost. Thus, cumulatively, it would strengthen CMNT”s performance further. (AM/ZH)

© 2024 - IDN Financials - All Rights Reserved.