Taro Snack Manufacturer Plans To Seek Loans Of Around IDR 5 Trillion From BNI And BCA

Photo: Doc. FKS Food Sejahtera

JAKARTA - Snack producer under the Taro brand, PT FKS Food Sejahtera Tbk (AISA) and its affiliates plan to withdraw syndicated loans with a ceiling of up to 350 million US dollars (around IDR 5 trillion) and an additional option of up to 100 million US dollars from domestic banks.

The plan is that the lenders are a group of banks which will be coordinated by PT Bank Negara Indonesia (Persero) Tbk. (BBNI) including PT Bank Central Asia Tbk. (BBCA). Apart from AISA, other parties that will receive the loan are affiliated companies including FKS Food and Agri Pte Ltd, PT Tene Capital, PT FKS Food and Ingredients, and PT FKS Multi Agro Tbk. (FISH).

For this syndicated loan transaction plan, the company will provide collateral in the form of assets with a minimum value of IDR 757 billion with a plan to provide guarantees of at least IDR 3.66 trillion.

"In addition to the guarantee plan, AISA together with affiliates will plan to provide guarantees in the form of corporate guarantees," explained AISA's management, in an information disclosure on the Indonesia Stock Exchange website, quoted on Tuesday, June 21.

For the record, the value of the Guarantee plan is 92.44 percent of AISA's equity based on the financial statements of December 31, 2021, which is 53.052.491 US dollars or approximately IDR 757 billion, so the planned transaction is a material transaction based on Financial Services Authority Regulation (POJK) 17/2020.

Therefore, AISA is required to seek approval from independent shareholders at the General Meeting of Shareholders (GMS) related to material transactions and affiliated transactions on 27 July 2022. AISA management confirms that the credit facility is beneficial for the additional working capital required by AISA, so it is estimated that with With the additional working capital, the company can improve its performance to be more optimal.