by Joe Hope
REA Holdings Plc said on Thursday that it has successfully 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 PT Sasana Yudh Bhakti subsidiary, or SYB, and its PT Kutai Mitra Sejahtera subsidiary, or KMS, received loans of 555 billion Indonesian rupiah ($38.9 million) and IDR365 billion ($25.6 million), respectively. done, both are due. more than eight years. These replace SYB’s previous five-year IDR331 billion loan and KMS’s one-year IDR123 billion loan.
The company said it has also secured a new working capital loan of IDR15 billion for SYB, which is renewed every year.
The interest rate on fresh loans and working capital borrowings will be 8.75%, lower than the previous rate of 9.75%.
The agreement is subject to technical terms and is expected to be completed within weeks. Upon completion, REA intends to initiate discussions with note holders of its 7.5% 2022 dollar notes, with a view to extending the maturity date to four years and will be happy to repurchase it.
Shares were up 3.5 pence, or 3.6%, at 100.0 pence at 1036 GMT.
Write to Joe Hope at [email protected]