REA Holdings Agrees to Replace Current Loan and Working Capital Facility

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Anthony O. Goryainov

REA Holdings PLC said Thursday that its subsidiary PT REA Kaltim Plantations has conditionally agreed with its Indonesian bankers to replace the current loan with two new loans and has agreed on a new working capital facility to replace the existing one.

The London-listed oil palm producer said the principal loan was IDR 868 billion ($ 60.1 million), with the two replacement loans totaling IDR 1.17 trillion, maturing over eight years. The company announced that its current working capital of Rs 70 million will be reduced to Rs 30 million.

The company said that the collateral for new loans and the working capital mechanism will be the same as for the current loan and working capital mechanism.

“The interest rate on new loans and working capital loans will be fixed when using the loan, but should not be higher than the interest rate of 10% per annum paid on the existing term loan and borrowed working capital,” the company said.

REA Holdings reported that proposals to replace the existing term loan of PT Sasana Yudha Bhakti subsidiary continue to advance through the approval process of PT Bank Mandiri (Persero) Tbk.

Email Anthony O. Goryainov at anthony.orunagoriainoff@dowjones.com

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