Chandra Asri Group Liquidity At The End Of Semester I 2024 Reaches 2.2 Billion US Dollars

JAKARTA - Until the end of the first semester of 2024, PT Chandra Asri Pacific Tbk (Chandra Asri Group) recorded strong liquidity of up to US$2.2 billion, especially on cash and cash equivalent accounts of US$1.1 billion on the Company's balance sheet.

In addition to liquidity in cash and cash equivalents for the period ending June 30, 2024, the liquidity of the issuer coded TPIA is also contained in securities instruments amounting to US $ 0.9 billion and US $ 0.2 billion in revolving credit facilities.

According to the Director of Chandra Asri Group, Suryandi, in the first half of this year the Company managed to maintain a positive EBITDA of US$18 million. TPIA's achievement in the first semester of 2024 was affected by challenging global market conditions, as well as maintenance of scheduled operational facilities or Turn Around Maintenance (TAM).

"This routine maintenance is to ensure the reliability of factories, safety and compliance with regulations. This maintenance effort involves experienced teams that make critical improvements and integrate new facilities to support future growth," said Suryandi, in his statement, Wednesday, July 31.

Suryandi further emphasized that so far Chandra Asri Group has been concentrated in carrying out its business strategy to achieve exponential and sustainable growth. In May 2024, Chandra Asri Group and Glencore Plc (Glencore) signed an agreement to acquire all assets belonging to Shell Singapore Pte Ltd in Shell Energy and Chemicals Park Singapore (SECP).

Through CAPGC Pte Ltd, the joint venture, which is mostly owned by Chandra Asri Group with Glencore as a minority partner, the joint venture is working to acquire a refinery with a capacity of 237,000 barrels per day, an ethylene cracker of 1.1 million metric tons on Bukom Island and additional chemical assets on Jurong Island.

Suryandi said that the Company hopes that this transaction can be completed by the end of 2024, but also depends on regulatory approval. This strategy is also believed to be able to strengthen Chandra Asri Group's existence and capabilities in the regional arena, as well as increase the competitiveness of the two companies and expand business opportunities in the region.

Please note, the Chandra Asri Group entered the MSCI Global Standard Index index which was effective on May 31, 2024. This is expected to increase the Company's visibility to global institutional investors, potentially increase liquidity and reduce capital costs. The existence of TPIA in the MSCI Global Standard Index also shows the Company's solid performance with businesses that have strategic growth initiatives and are committed to sustainable aspects.

The positive liquidity power and business prospects of TPIA are also reflected in the decision of PT Pemeringkat Efek Indonesia (PEFINDO) which reiterated the ranking of AA- to the Chandra Asri Group for outstanding bonds. The Company's prospects are at the stable level, because of the company's strong position in the Indonesian chemical industry.

Chandra Asri Group also received a syndicated loan facility of USD 800 million with OCBC acting as a lead arranger. In addition, the Company also obtained infrastructure loan facilities of IDR 4 trillion from PT Bank Mandiri (Persero) Tbk. These facilities show solid support from the banking industry and affirm Chandra Asri Group's commitment to responsible business practices and sustainable environmental management.