Prajogo Pangestu Conglomerate Company, Barito Pacific Receives IDR 1.7 Trillion Credit From BNI, The Money Is To Pay Debt To Bangkok Bank

JAKARTA - PT Barito Pacific Tbk. reported that the company has agreed to receive a credit facility from PT Bank Negara Indonesia Tbk (BNI) amounting to 125 million US dollars or equivalent to IDR 1.78 trillion (exchange rate of IDR 14,272 per US dollar).

Director and Corporate Secretary of Barito Pacific, Diana Arsiyanti, said this facility was originally intended to be used by the company for strategic purposes.

"Pay off all debts to Bangkok Bank that arose based on the facility agreement dated December 19, 2019", she said in an information disclosure submitted to the Indonesia Stock Exchange (IDX) as quoted on Friday, September 24.

Diana added that the fresh funds would also be used by the issuer codenamed BRPT to cover other financial obligations.

"Pay off the Series A Bonds issued by the Company in the context of the Phase III 2020 Continuous Public Offering I which will mature on December 18, 2021", he said.

According to Diana, the latest action that was taken also has the potential to maintain a healthier balance sheet and cash flow.

"By obtaining the loan from BNI, the company can reduce overall interest costs, and further strengthen the company's financial position by structuring the loan term", she said.

For information, Barito Pacific's commitment to BNI is stated in the Deed of Credit Agreement Number 117 made before Wenda Taurusita Amidjaja, Notary in Jakarta, and the Deed of Agreement for the Provision of Treasury Line Facilities Number 118 made before Notary Wenda on September 21, 2021.

Specifically for the Treasury Line Facility, it is stated that BRPT will receive a maximum disbursement of 20 million US dollars or IDR 285.45 billion.

"The loan based on the Facility Agreement will mature within 84 months after the signing of the Facility Agreement, while the Treasury Line Facility will expire within 12 months from the signing of the Treasury Line Facility agreement", Diana continued.

As the underlying, BRPT pledged (pawned) the shares owned by the company in PT Chandra Asri Petrochemical Tbk. which is none other than a business entity that is still affiliated with Barito Pacific.

Based on information compiled by the editors, BRPT is a private company engaged in forestry, plantation, mining, industry, property, trade, renewable energy, and transportation businesses.

It is also known that Barito Pacific is a public company whose management is controlled by conglomerate Prajogo Pangestu with share ownership of 70.85 percent or the equivalent of 66.41 billion shares.

VOI noted that Prajogo is the third richest person in Indonesia with a recapitulation of 7.53 billion US dollars or IDR 105.33 trillion in assets, according to the Bloomberg Billionaires Index quoted earlier this year.