JAKARTA - PT United Tractors Tbk (UNTR), a heavy equipment company under Astra Group, agreed upon the loan given to its subsidiary, PT Multi Prima Universal (MPU), worth USD 30 million.

According to the information disclosure today (3/1) in Indonesia Stock Exchange, said loan agreement was signed by UNTR and MPU on December 29, 2023.

“The company grants a loan to MPU, which will be used by MPU to fulfil its capital expenditure and working capital needs,” said Sara K. Loebis, Corporate Secretary of UNTR, in the official release.

Said loan of USD 30 million consists of Tranche A of USD 25 million in the form of a term loan and Tranche B, in a form of a revolving loan, worth USD 5 million.

The interest borne by MPU is set to Term SOFR + 2% per annum. The fund is said to be available for the next year, starting from the agreement signing date.

Based on the official statement, Tranche A has a tenor of a maximum of 3 years after the last loan withdrawal, while Tranche B will last at a maximum of 3 months after the end of the fund availability period.

It is worth mentioning that MPU is a subsidiary of UNTR, indirectly owned through PT Pamapersada Nusantara (PAMA), which controls 50.01% of MPU.

This affiliate transaction is believed to bring positive impact to UNTR. “It will be more beneficial to the Company to receive interest payment from loans compared to saving it in deposit,” Loebis concluded. (ZH)