PT Tuah Turangga Agung (TTA), a subsidiary of PT United Tractors Tbk (UNTR), has agreed to a shareholder loan agreement worth USD 15 million for Cipta Coal Trading Pte Ltd (CCT).

Sara K. Loebis, Corporate Secretary of UNTR, claimed that said facility will be used to improve its working capital and promote CCT’s business activities. “This transaction will fund operational activities of CCT. Furthermore, it is more beneficial for TTA to receive interest income from this loan instead of placing funds in deposit accounts,” she explained in the information disclosure in Indonesia Stock Exchange (IDX).

In the loan facility agreement signed on August 2, 2022, UNTR applied an interest rate of SOFR (Secured Overnight Financing Rate) + 2% per year. The facility will be available until June 30, 2027.

For the record, TTA and CCT are affiliated as 50% of CCT belongs to TTA, while 99.99% of TTA is owned by UNTR. Until March 31, 2022, UNTR reported having cash and cash equivalents of IDR 35.72 trillion and total equity of IDR 77.12 trillion. (KR/ZH)

Source: https://www.idnfinancials.com/news/43882/untrs-subsidiary-channels-cipta-coal-trading