JAKARTA - PT Merdeka Copper Gold Tbk (MDKA) grants a revolving credit facility with a maximum limit of USD 100 million to fund the operation of PT Merdeka Battery Materials Tbk (MBMA). This affiliate transaction was signed yesterday (18/12).

Deny Greviartana Wijaya, Corporate Secretary of MBMA, said that this revolving credit facility uses a reference currency of 3-month secured overnight financing rate (SOFR) on withdrawal, as well as a margin of 5.50% per annum.

After securing this facility, MBMA’s cash and cash equivalent will proliferate by USD 100 million to USD 428.09 million from USD 328.09 million, as seen in H1 2023 Financial Report. Therefore, its current assets will rise to USD 889.13 million from USD 789.13 million. Its long-term liabilities will also increase from USD 618.55 million to USD 718.55 million.

MDKA is known to be the controller of 50.04% of MBMA’s shares. The transaction value is below 20% of total equity of MBMA, amounting to USD 2.10 billion as of June 2023. (LK/ZH)