JAKARTA. PT Dian Swastatika Sentosa Tbk (DSSA) and one of its subsidiaries, PT DSSE Energi Mas Utama (EMU), submits a guarantee for the extra credit facility worth RMB 500 million or IDR 1.1 trillion granted to PT Smart Telecom (Smartel).
Said credit facility was channelled out by the Shenzen branch of China Development Bank (CDB), a bank owned by the People’s Republic of China (China). On top of DSSA and EMU’s guarantee, Smartel’s ultimate shareholder, PT Smartfren Telecom Tbk (FREN), also had given a guarantee for this same loan facility.
In return to this guarantee provision, DSSA and EMU will receive financial aid from Smartel. The amount of return agreed in the guarantee contract is a minimum of IDR 1 billion and a maximum of IDR 8.25 billion per annum as long as the contract stands.
“This transaction is an affiliate transaction as mentioned in the Financial Services Authority Regulation (POJK) No.42/2020 as the company, EMU, and Smartel are directly and indirectly under the Widjajas,” the management of DSSA clarified in the official announcement.
For the record, the facility received by Smartel from CDB will be utilised to support the telecommunication network development and the network coverage expansion. This plan is a part of the technology and digital business expansion of FREN and Smartel. (KR/ZH)