By Joe Hoppe
REA Holdings PLC said Thursday it has completed discussions with its Indonesian bankers PT Bank Mandiri (Persero) Tbk to replace existing loans to its subsidiaries with larger facilities at lower interest rates.
The palm oil producer said that its subsidiary PT Sasana Yudha Bhakti, or SYB, and its subsidiary PT Kutai Mitra Sejahtera, or KMS, had obtained loans worth 555 billion Indonesian rupees, respectively (38.9 billion million) and IDR 365 billion ($ 25.6 million), both payable. over eight years. These replace SYB’s previous five-year IDR 331 billion loan and KMS’s one-year IDR 123 billion loan.
The company said it also secured a new IDR 15 billion SYB working capital loan, renewable annually.
Interest rates on new loans and working capital borrowings will be 8.75%, down from the previous rate of 9.75%.
The agreement is subject to technical conditions and should be finalized in a few weeks. After completion, REA intends to open discussions with holders of the 7.5% 2022 dollar notes, with a view to extending the maturity date by four years on terms it would be happy to repurchase. .
Shares at 10:36 a.m. GMT were up 3.5 pence, or 3.6 percent, to 100.0 pence.
Write to Joe Hoppe at [email protected]