JAKARTA. PT Merdeka Copper Gold Tbk (MDKA), a mining company under PT Saratoga Investama Sedaya Tbk (SRTG), has signed a financing facility agreement in order to support the copper smelting plant managed by one of its subsidiaries.
Said facility agreement was signed along with PT Merdeka Tsingshan Indonesia (MTI), the subsidiary in question, which is indirectly owned by MDKA through PT Batutua Pelita Investama (BPI). Until May 10, 2022, BPI is listed as the owner of 80% of MTI.
The financing facility provided by MDKA for MTI amounts to USD 50 million. Both companies also agree to set the interest rate of this facility to LIBOR+5% per year. Then, the agreement will last for five years.
As mentioned in the information disclosure in Indonesia Stock Exchange (IDX), the credit facility given by MDKA will be utilised to fund MTI’s copper smelting facility project. It includes all processes, such as design, procurement, construction, and expansion. “It is to manufacture coppers that are ready for export,” the management stated.
For the record, this financing facility is categorised as an affiliate transaction as regulated by the Financial Services Authority (OJK). On top of being the shareholder of MTI, some of MDKA’s directors also take office as director and commissioners of MTI. (KR/ZH)