DJ R.E.A. Holdings plc: Bank funding in Indonesia
R.E.A. Holdings plc (RE.)
R.E.A. Holdings plc: Bank funding in Indonesia
27-March-2025 / 07:00 GMT/BST
=----------------------------------------------------------------------------------------------------------------------
R.E.A. Holdings plc ("REA" or the "company")
Bank funding in Indonesia
REA announces that agreement has been reached with the group's Indonesian banker, Bank Mandiri, to provide further term
loans, and to amend the repayment terms of certain of the existing loans, to group plantation subsidiaries in
Indonesia.
Further loans have been extended to each of REA Kaltim and SYB amounting to the equivalent of, respectively, USD28.8
million and USD8.8 million, with such loans repayable by increasing monthly instalments over periods of between seven and
nine years. Repayments of the outstanding principal of the older existing loans to each of REA Kaltim and SYB,
amounting as at 26 March 2025 to the equivalent of, respectively, USD41.6 million and USD24.6 million, have been rephased
and will now be made by increasing monthly instalments over a period of four years. The loan of Rp 350 billion
(equivalent to USD21.1 million) which Bank Mandiri agreed to provide to REA Kaltim in March 2024, of which the full
amount is currently outstanding and which is repayable by increasing quarterly instalments from June 2028 up to March
2034, has not been amended and remains in place.
Additionally, Bank Mandiri has provided a new term loan to PU. The loan is equivalent to USD15.0 million and is repayable
by increasing monthly instalments over nine years.
The amended and new loans carry interest at rates of between 8.25 and 8.5 per cent per annum and will all be guaranteed
by the company. In addition, the loan to SYB will be guaranteed by REA Kaltim and the loan to PU by Luke Robinow
personally in his capacity as President Director of PU (Bank Mandiri having required such personal commitment by the
management of PU as PU's oil palm estate is still under development). The company will provide a limited indemnity to
Luke Robinow in respect of his guarantee to Bank Mandiri.
The further loans to REA Kaltim and SYB have been drawn down in full and the new loan to PU to the extent of USD5.1
million. Following such drawdowns, group borrowings from Bank Mandiri currently amount in aggregate to the equivalent
of USD168.7 million. The balance of the agreed new loan to PU of USD9.9 million is expected to be drawn down during the
next few months.
The new loans to REA Kaltim and SYB will provide the group with additional cash resources equivalent to USD37.6 million.
These will be used principally to fund repayment of existing borrowings, including repayment of the GBP21.4 million
nominal of sterling notes falling due on 31 August 2025, and to a limited extent in augmenting working capital for the
company's operations. The new loan to PU will be used to fund a proportion of PU's continuing development programme.
Enquiries:
R.E.A Holdings plc
Tel: 020 7436 7877
=----------------------------------------------------------------------------------------------------------------------
Dissemination of a Regulatory Announcement that contains inside information in accordance with the Market Abuse
Regulation (MAR), transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
=----------------------------------------------------------------------------------------------------------------------
ISIN: GB0002349065
Category Code: MSCM
TIDM: RE.
LEI Code: 213800YXL94R94RYG150
Sequence No.: 380265
EQS News ID: 2106970
End of Announcement EQS News Service
=------------------------------------------------------------------------------------
Image link: https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=show_t_gif&application_id=2106970&application_name=news&site_id=dow_jones%7e%7e%7ef1066a31-ca00-4e1a-b0a4-374bd7d0face
(END) Dow Jones Newswires
March 27, 2025 03:00 ET (07:00 GMT)
© 2025 Dow Jones News
