JAKARTA - PT Jaya Agra Wattie Tbk (JAWA), a processed tobacco manufacturer, has secured a loan worth IDR 1.25 trillion from its shareholder, PT Sarana Agro Investama (SAI). This affiliate transaction is projected to lower interest expenses borne by JAWA by 34-100%.

Harli Wijayadi, Corporate Secretary of JAWA, mentioned that the transaction is decided after considering the less harmful impact for the business. “The transaction value is over 50% of total equity of the company,” he said in the information disclosure quoted Wednesday (23/10).

As said before, JAWA decides to request another shareholder loan from SAI as the credit is interest-free and does not require collaterals, whereas loan from third party may charge an interest rate of 8.25% per annum.

It is known that JAWA obtained a loan of IDR 500 billion on August 30, 2018. Then, it secured another facility worth IDR 1 trillion in 2020, as well as another IDR 1 trillion in 2022.

According to the contract, JAWA is said to swap a portion of the debts to equity worth IDR 1.24 trillion, consisting of facility I of IDR 245.82 billion and facility II of IDR 1 trillion.

On June 19, 2024, this company booked loans of IDR 30.85 billion, thus bringing total shareholder loan from SAI of IDR 1.03 trillion, which will be used to facilitate business activities. With this loan transaction, the total facilities from SAI to JAWA might reach IDR 2.25 trillion. (LK/ZH)