JAKARTA. PT Merdeka Battery Materials Tbk (MBMA) has signed a credit agreement worth USD 35.96 million to one of its subsidiaries, PT Sulawesi Cahaya Mineral (SCM).

In said agreement, SCM is said to be charged with SOFR (Secured Overnight Financing Rate) and a margin of 4.75% per annum. This facility will take effect starting from September 26, 2023.

The management of MBMA mentioned that this facility is intended to raise SCM’s working capital. “It includes covering costs of employees, professionals, royalty to state treasury, stevedoring, maintenance and repair, and mining,” the management revealed in the official statement.

For the record, SCM is a subsidiary owned by MBMA with a stock ownership of 51%. As of now, SCM has obtained a Mining Business License for nickel production in Konawe Regency, with a total mining concession area of 21,100 hectares.

According to IDNFinancials data, MBMA was officially publicly listed on Indonesia Stock Exchange (IDX) on April 18, 2023. The company raked in fresh funds of IDR 8.75 trillion after issuing 107.45 billion shares in its initial public offering (IPO). (KR/ZH)