JAKARTA. A subsidiary of PT Adaro Enery Indonesia Tbk (ADRO), PT Alam Tri Abadi (ATA), has reportedly signed a loan agreement with an affiliate, PT Adaro Indonesia (AI).

In said agreement, ATA, as a subsidiary of ADRO with total ownership of 99.99%, has received a loan facility worth USD 550 million from AI. For the record, AI is an affiliate of ATA due to similar shareholder and management structure.

Said facility will mature in 5 years since the agreement signing date. The interest rate applied by AI to ATA is SOFR (Secured Overnight Financing Rate) plus 1.40% per year.

"The loan will be utilized, among others, for investment and other corporate purposes," said the management of ADRO in the official statement.

The facility agreement is deemed more efficient compared to third-party loan. For AI, this loan facility is also believed to generate better interest income compared to deposits in bank.

According to IDNFinancials data, ADRO recorded total assets worth USD 10.46 billion as of March 31, 2024. Its cash and cash equivalent were at USD 3.16 million, while its total equity was recorded at USD 7.79 billion. (KR/ZH)