JAKARTA – PT Medco Energi Internasional Tbk (MEDC) signed a loan agreement with its subsidiary, Medco Bell Pte. Ltd. (MBL), last Monday (13/1).

According to a disclosure on the Indonesia Stock Exchange (IDX) today (14/1), the loan amounts to USD 435.3 million, approximately equivalent to IDR 7.1 trillion, based on the exchange rate of IDR 16,270 per US dollar as of today (14/1).

Despite the significant amount, MEDC announced that the loan would not bear any interest and remain valid until it is fully repaid by MBL.

“This transaction does not impact the Company’s financial condition because MBL is a wholly-owned subsidiary of the Company, thus it is not separately reflected in the consolidated financial statements,” said Siendy K. Wisandana, Corporate Secretary of MEDC, in an official statement.

The loan is classified as an affiliate transaction since MBL is indirectly wholly owned by MEDC.

“The loan will be used by MBL for tendering, refinancing, and/or repaying its debt,” Wisandana added.

As of September 2024, MEDC’s total assets amounted to USD 7.68 billion, with cash and cash equivalents of USD 606.45 million. (ZH)