ABMM Secures US$30 Million Subordinated Loan
Support and commitment from major ABMM shareholders through shareholder loan to strengthen Company’s operational cash in 2014
Jakarta, June 30, 2014 - PT ABM Investama Tbk (IDX : ABMM), on June 27, 2014, signed an agreement with Valle Verde Pte.Ltd – which controls 55% of ABMM shares – to secure a loan worth US$30 milion. ABMM will use the loan to strengthen its working capital amid the Company’s efforts to continue improving productivity and effectiveness in its entire operational lines and subsidiaries.
ABMM President Director Andi Djajanegara explained that the loan from Valle Verde Pte. Ltd provides several benefits for the Company. First, its interest is lower than those offered in the banking sector, namely Libor +3.10%. Second, this subordinate loan allows the Company to conduct repayment once the loan to club deal has been settled. Third, in order to secure the loan, the Company is not obligated to provide collateral.
“The Loan from Valle Verde Pte. Ltd is proof of the commitment and full support from shareholders to boost ABMM’s operational performance and allow it to grow in a healthy and efficient manner. With the loan’s more competitive interest and better terms and conditions, the Company’s burden will certainly decline,” Andi said in Jakarta, June 30, 2014 (06/30).