JAKARTA. PT Garudafood Putra Putri Jaya Tbk (GOOD) has channelled a loan worth IDR 29.11 billion or equal to USD 1.96 million to PT Hormel Garudafood Jaya (HGJ), a joint venture owned by GOOD and Hormel Foods Asia Pacific.

This loan facility is equipped with an interest rate of JIBOR of 12 months plus 2.5% per annum. The interest will be paid by HGJ each year at the end of the period, on December 27, 2023. In the meantime, the principal will be completely paid off by HGJ bit by bit, starting from January 5, 2026, to January 5, 2029.

“The purpose of this transaction is to acquire funding for the development of a new product (snack),” the management said in the official statement.

On top of this, HGJ also plans to request another loan from Hormel Foods, but the amount has yet to be disclosed.

The management of GOOD admitted that this loan is allocated for HGJ to expedite the funding, as granting loans to subsidiaries is said to be quicker than requesting bank loans. It is also related to immediate needs for factory machine acquisition and setting up infrastructures.

According to IDNFinancials, GOOD had indeed announced its new product launch plan in 2023. However, the detail has yet to be revealed widely to the public. (KR/ZH)