GEMS reduces loan size for subsidiary
Tuesday, July 22 2014 - 04:05 AM WIB
IDX-listed coal mining firm PT Golden Energy Mines Tbk (GEMS) has reduced the size of loan facilities extended to its coal miner subsidiary PT Bara Harmonis Batang Asam (BHBA) to a combined US$5 million from the initial $50 million.
GEMS said in a statement Monday that the maturity date of the loan, signed by the two firms on July 19, 2011, has been pushed back to December 31, 2016 from July 31, 2014.
The interest rates, however, were maintained at 8 percent for the dollar denominated loan, and 12 percent for the rupiah loan.
The changes were contained in the third amendment made on July 17 to the loan agreement. BHBA will use the loan to help finance the construction of coal mining infrastructure facilities.
GEMS and affiliated firm PT Kuansing Inti Makmur acquired 100 percent shares of BHBA in 2010.
BHBA operates a coal concession in Muaro Bungo Regency, Jambi.
Editing by Reiner Simanjuntak