JAKARTA. PT Arkora Hydro Tbk (ARKO) has secured a loan facility worth IDR 125 billion from PT United Tractors Tbk (UNTR) for refinancing, investment, and working capital.

Refinancing in question will be conducted regarding a facility from one of its shareholders, ACEI Singapore Holdings Private Ltd. After the debt has been paid, the company will utilise the remaining loan facility for investment and working capital.

"Particularly for business expansion in terms of project acquisition that will be initiated by the company," the management of AKRO in an official disclosure received by IDNFinancials.

For the record, the loan granted by UNTR is a revolving loan. The facility fee is set to 0.5% p.a., while the annual interest is set to 9.5%. The funds will be available for a year, starting from the signing of the facility agreement, while the facility agreement itself will continue to take place until March 27, 2030.

The loan facility is categorised as a material transaction as dictated by Financial Services Authority (OJK), as the total loan facility is equal to 31.25% of total equity of ARKO. Furthermore, it is also categorised as affiliate transactions, given the fact that UNTR controls 31.49% of AKRO's shares through PT Energia Prima Nusantara and PT Bina Pertiwi Energi. (KR/ZH)