REG-R.E.A. Holdings plc R.E.A. Holdings plc: Bank funding in Indonesia

R E A HoldingsAnnouncement

27/03/2025 07:15

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   R.E.A. Holdings plc (RE.)
   R.E.A. Holdings plc: Bank funding in Indonesia

   27-March-2025 / 07:00 GMT/BST

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   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, $28.8 million and $8.8 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, $41.6 million and $24.6
   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 $21.1 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 $15.0 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 $5.1 million. Following such
   drawdowns, group borrowings from Bank Mandiri currently amount in
   aggregate to the equivalent of $168.7 million.  The balance of the agreed
   new loan to PU of $9.9 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 $37.6 million. These will be used principally
   to fund repayment of existing borrowings, including repayment of the £21.4
   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

    

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   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.

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   ISIN:          GB0002349065
   Category Code: MSCM
   TIDM:          RE.
   LEI Code:      213800YXL94R94RYG150
   Sequence No.:  380265
   EQS News ID:   2106970


    
   End of Announcement EQS News Service

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