R.E.A. Holdings Secures New Bank Funding in Indonesia

R.E.A. Holdings plc has reached an agreement with its Indonesian bank, Bank Mandiri, to secure additional term loans and amend the repayment terms of existing loans for its plantation subsidiaries. New loans amounting to $28.8 million for REA Kaltim and $8.8 million for SYB are set for repayment over seven to nine years. Existing debt repayments have also been restructured to four years.

A new $15 million loan has been granted to PU, repayable over nine years. The loans carry interest rates between 8.25% and 8.5% and are supported by corporate and personal guarantees. Total borrowings from Bank Mandiri now total $168.7 million.

The funds will help with upcoming debt obligations and working capital, while supporting PU's development initiatives. The balance of PU's loan is expected to be drawn soon.