PT Kalimantan Alumunium Industry (KAI) and PT Kaltara Power Indonesia (KPI) have obtained a loan facility of IDR 2.5 trillion in total to aid the establishment of aluminium smelting facility and power plant in North Kalimantan. In the information disclosure quoted Wednesday (17/5), Mahardika Putranto, Corporate Secretary of PT Adaro Energy Indonesia Tbk (ADRO), the indirect parent company of KPI and KAI, said that this facility is intended to support investment and operational activities of the company. "The project development is an example of our commitment and participation in the government's mineral downstreaming programs," he said.
The loan facility for KAI is set to IDR 1.54 trillion, which will be utilised to carry out the aluminium smelting plant project with a capacity of 500,000 tons per year. Meanwhile, the facility for KPI, amounting to IDR 952.1 billion, will be used to develop a power plant with a capacity of 1,060 megawatt (MW). These two projects are located in the industrial area that will be developed by PT Kalimantan Industrial Park Indonesia. The facility will mature in 8 and 10 years, respectively, after the facility agreement was signed.
The collateral submitted for this facility is a pledge of shares of PT Adaro Indo Alumunium (AIA) in KPI and PT Adaro Power (AP) in KAI, whose total value does not exceed the transaction value of the facility agreement. The facility agreement signing and the guarantee submission took place last Friday (12/5).
Source: https://www.idnfinancials.com/news/46902/adro-subsidiary-secures-idr-loan
