JAKARTA. PT Merdeka Battery Materials Tbk (MBMA) has channelled credit facility of USD 50 million to PT Merdeka Tsingshan Indonesia (MTI), an indirect subsidiary through PT Batutua Pelita Investama.

Said credit facility is given with the reference foreign exchange rate of Secured Overnight Financing Rate (“SOFR”) with a tenor of 3 months and a margin of 5.26% per annum. The facility has begun taking effect starting from June 16, 2023.

With this credit facility, MTI will be able to meet some portions of its working capital needs for the Acid Iron Metal (AIM) project in Morowali. This project will be handled by the joint venture with Tsingshan, and is scheduled to start operating in the second half of 2023.

The management of MBMA also said that this credit facility is expected to increase the company’s financial performance in the future. (KR/ZH)