CMNT Consolidates Loan Facilities to Enhance Efficiency and Support Sustainable Growth
Friday, 24 January 2025
Jakarta, January 24, 2025 – Semen Merah Putih producer, PT Cemindo Gemilang, Tbk (CMNT) has signed a Loan Facility Agreement with Bangkok Bank Public Company Limited, effective as of January 20, 2025.
The loan facility integrates a combination of long-term loans and working capital financing amounting around $450 million and other facilities of letter of credit and foreign exchange hedging facilities to support the Company’ transactions and manage financial risks in both domestic and international market.
This facility does not increase the Company’s debt or financial obligations. Instead, the initiative aims to consolidate the Company’s various existing loans into a more efficient and competitive financing structure. Through this arrangement, the Company will gain several strategic benefits, including: an optimized payment structure, a rationalized loan maturity, and enhanced financial management efficiency align with the company’s long-term value creation objectives.
In addition to improving the Company’s financial profile, this loan facility will also support the development of the Company’s strategic assets. One of the main focuses is to strengthen operational activities, particularly in transportation and distribution. This includes company’s ownership of assets will enable more reliable delivery of goods and support better-optimized planning processes. Consequently, the initiative will drive greater efficiency in funding the Company’s expansion into deeper regions of Indonesia, supporting its sustained business growth.
This strategic step has been approved by the Company’s shareholders through an Extraordinary General Meeting of Shareholders (EGMS) held on December 4, 2024. The full support from the Company’s creditors reflects a high level of confidence in the Company’s track record of meeting long-term financial obligations, while also demonstrating optimism about the Company’s future business prospects.
With consistency in innovation and efficiency, PT Cemindo Gemilang, Tbk continues to cement its position as a leading player in the cement industry—a testament to its commitment to sustainable growth and long-term value creation for all stakeholders.
