JAKARTA – PT Cemindo Gemilang Tbk (CMNT), the producer of Merah Putih cement, has secured a bank facility totaling USD 1.05 billion, equivalent to IDR 17.14 trillion.

The loan facility is provided by Bangkok Bank Public Company Limited as the arranger and PT Bank Permata Tbk (BNLI) as the security agent or account bank. The credit facility agreement was signed on January 20, 2025.

The loan consists of four facilities. Tranche A, amounting to USD 420 million, has a tenor of 84 months, while Tranche B, worth USD 30 million, has a tenor of 72 months.

Additionally, there is a combined working capital facility with a total value of USD 53 million, which is annually revolving, and a hedging facility with a total value of USD 550 million with a 12-month tenor.

“This transaction has been approved by the company’s shareholders based on the resolution of the Extraordinary General Meeting of Shareholders held on December 4, 2024,” said Vince Erlington Indigo, Vice President Director of CMNT, in an official disclosure on Thursday (23/1).

According to him, the loan facility is expected to have a positive impact on the company's financial condition and support the sustainability and future development of its business.

“This loan facility does not add to the company’s debt or financial obligations. Instead, it consolidates various existing loan facilities into a single facility with a better and more advantageous financing structure,” he concluded. (DK/ZH)