JAKARTA. PT Merdeka Copper Gold Tbk (MDKA) has made amendments in the credit facility agreement signed for PT Merdeka Tsingshan Indonesia (MTI).
In said amendment, the limit of the credit channelled out by MDKA to MTI has been increased to USD 200 million. MDKA previously only provided loans capped at USD 50 million to MTI.
In the information disclosure in Indonesia Stock Exchange (IDX) yesterday (18/8), the management of MDKA claimed that a portion of the facility will be used for debt refinancing. MTI will also allocate some amount to the working capital, as well as paying construction and operational costs with said facility.
With this credit limit extension, the transaction value within this facility now equals 22.34% of MDKA’s total equity. Referring to the regulation made by the Financial Services Authority (OJK), this loan facility is categorised as a material transaction now. (KR/ZH)