LION to secure credit of IDR 88 billion from BCA
JAKARTA - PT Lion Metal Works Tbk (LION) has obtained a credit facility with a credit limit of IDR 88 billion from PT Bank Central Asia Tbk (BBCA). This loan is said to enhance its own financial liquidity.
In the information disclosure quoted Monday (15/5), Lawer Supendi, Director of LION, claimed that this credit facility agreement had been signed along with its subsidiary, PT Singa Purwakarta Jaya (SPJ), last week, on May 11, 2023.
The facility consists of a bank guarantee, a letter of credit (L/C) at sight and L/C at usance of 6 months at max (multicurrency), a local L/C of 3 months at max worth IDR 40 billion for a year, a local credit facility of IDR 3 billion for a year, and an instalment loan facility of IDR 45 billion for five years.
The credit’s guarantee will be one unit of factory (land and building) in LION’s industrial area on behalf of SPJ. A special guarantee aimed to cover a multi-company facility is a cash collateral of 30% of the withdrawn facility, as well as one unit of building in LION’s industrial area, which had mortgage rights of a minimum 125% of the total credit limit of IDR 88 billion.
For the record, the total of this loan arrives 50% lower than LION’s own net assets. (LK/ZH)