JAKARTA. PT Merdeka Battery Materials Tbk (MBMA) has signed a financing facility with PT Merdeka Tsingshan Indonesia (MTI) worth up to USD 200 million.

“Said fund will be used by MTI for corporate general needs,” said the management of MBMA in the official disclosure in Indonesia Stock Exchange (IDX).

According to IDNFinancials data, MBMA reported cash and cash equivalent of USD 247.16 million as of June 30, 2024. The loan facility given to the company is not categorised as material transactions as its value will not exceed 20% of total equity of USD 2.32 billion recorded in June 30, 2024.

MBMA did not disclose the loan interest rate applied for this facility for MTI. However, the management of MBMA admitted that this facility is more efficient if it was given by the company as MTI’s parent entity, compared to third-party loans.

As of now, MBMA controls 80% of MTI through PT Batutua Pelita Investama (BPI). (KR/ZH)