JAKARTA. PT PP Properti Tbk (PPRO) has requested a loan of IDR 800 billion to PT PP Tbk (PTPP) to aid the company in fulfilling obligations due 2022 and 2023.

The creditor has put 10% annual interest rate on the non-revolving loan, or approximately 0.83% per month. The tenor of this loan agreed by PPRO and PTPP is 12 months.

The management of PPRO said that the company needs this facility as its main funding source still lies on the public housing credit. “Meanwhile, the requirement of the public housing credit facility is starting to be tightened,” they admitted.

On the other hand, PPRO also needs some strategies to fulfil the maturing obligations. “Some of them are the principals and interests of MTN, bonds, bank debts, and/or letter of credits (L/C), which will be covered with the loan facility from PTPP,” the management confirmed.

For the record, PTPP’s loan facility to PPRO is categorised as an affiliate transaction as dictated by the Financial Services Authority (OJK), given the fact that PTPP controls 64.96% of PPRO. (KR/ZH)