Coal Company Owned By Conglomerate Low Tuck Kwong Gets Loan Extension From Sumitomo Mitsui Until 2024

Conglomerate Low Tuck Kwong. (Photo: Doc. Maris Stella High School Alumni)

JAKARTA - Coal mining company PT Bayan Resources Tbk (BYAN) obtained a loan extension facility from Sumitomo Mitsui Banking Corporation Singapore Branch.

On March 24, 2020, the company owned by conglomerate Low Tuck Kwong has signed an extension of the banking facilities previously granted on March 21, 2018 and March 29, 2019 by Sumitomo Mitsui Banking Corporation Singapore Branch and amended certain terms and conditions.

"Namely in the form of (i) reducing the revolving loan facility to US $ 75 million, from which previously it was valued at US $ 100 million and (ii) reducing the bank guarantee facility to US $ 20 million, where previously it was US $ 30 million," the letter said. Bayan Resources management statement signed by Dato Low Tuck Kwong, quoted from the disclosure of information on the Indonesia Stock Exchange (IDX) website, Thursday, March 25.

"The extension of the banking facility is extended for three years until March 19, 2024," added Bayan Resources management.

Furthermore, the purpose of using this facility is to finance the operational and working capital needs of the company and its subsidiaries. This is also to fulfill the need for the issuance of a bank guarantee to support the operational activities of the company and its subsidiaries.

This credit facility is guaranteed by a corporate guarantee provided by PT Bara Tabang, which is Bayan's anar business. Neither Bayan nor Sumitomo Mitsui Banking has an affiliated relationship.

For information, in terms of performance, Bayan Resources posted profit for the period attributable to the parent entity amounting to US $ 108.22 million or equivalent to Rp1.5 trillion in the January-September 2020 period.

Bayan Resources' total profit in September 2020 fell 48.25 percent compared to September 2019's position of US $ 229.73 million.