PTBA, Mandiri sign loan agreement

Petromindo|Dasir

IDX-listed coal giant PT Bukit Asam Tbk (PTBA) and IDX-listed Bank Mandiri signed on Tuesday lending agreement worth Rp 1.7 trillion and US$230 million.

PTBA said in a statement that of the $230 million loan, $100 million is in the form of special facility loan to finance working capital, and $130 million is a treasury line credit to meet the company?s foreign exchange needs.

Meanwhile, Rp 700 billion of the rupiah-based loan is in the form of supplier financing facility, and another Rp 700 billion in the form of trust receipt non LC facility to help ensure payment to PTBA?s suppliers including state-owned railway firm PT Kereta Api Indonesia (KAI), which provides coal transportation service. Another Rp 300 billion is in the form of financing invoice facility.

As per November of 2016, Bank Mandiri has disbursed a total of Rp 13.8 trillion loans to the mining sector, a 20.2 percent growth compared to the same period of last year.

Arviyan Arifin, President Director of PTBA, said that the loans from Bank Mandiri will help realize the company?s plan to increase future coal transport via railway, which in turn would also help realize higher production target.

Editing by Reiner Simanjuntak