JAKARTA. PT Modernland Realty Tbk (MDLN), a real estate developer and management company, has signed a loan facility agreement worth USD 60 million amidst the current negative financial performance it is facing.

The loan facility is secured by several subsidiaries of MDLN, including PT Mitra Sindo Sukses (MSS), PT Mitra Sindo Makmur (MSM), and PT Bumi Perkasa Permai (BPP).

The loan is given by Eight Rubies Limited, with PT Bank Jtrust Indonesia Tbk (PSAB) as the arranger and Madison Trust Pacific Limited as the guarantee agent.

The management of MDLN said that the loan transaction is carried out due to an active commitment of asset divestment worth USD 200 million stated in the indenture for Notes 2025 and 2027.

Said securities, issued in US Dollar, will mature in December 2024. The proceeds of asset divestment will then be reallocated to Notes 2025 and 2027 buyback.

“With this transaction, the company may reduce the USD bond obligation and secure gains from this obligation fulfilment,” said the management of MDLN in the official statement.

Based on IDNFinancials data, MDLN booked a loss of IDR 245.08 billion as of August 31, 2024. Meanwhile, in fiscal year 2023, its loss were recorded at IDR 101.97 billion. (KR/ZH)